EUR/JPY takes stops out below the 131 handle

FXstreet.com (Barcelona) - The EUR/JPY foreign exchange cross rate is last trading at 131.01 bids, off recent session and weekly lows at 130.81, on the back of a USD sell off in the DXY index, driven mostly on Yen strength, through the USD/JPY pair, taking with it other Yen crosses

EUR/JPY lower on Yen strength

According to market sources the move has taken out stops losses below the 131.00 support. The move lower has come completely from Yen strength, minutes before Tokyo opens, in a session ahead with a blanc economic calendar, as EUR/USD has remained unchanged in same time period. The cross is still up +15.32% year to date, +10.86% in last 6 months, and +1.1% in last month according to Reuters.

EUR/JPY key technical levels

Immediate support to the downside for EUR/JPY lies at recent session/weekly lows 130.81, followed by July 09 highs at 130.56, and July 11 highs/past Wednesday's lows at 130.44/31. To the upside, closest resistance shows at yesterday's/Friday's lows 131.12/19, followed by July 17 highs at 131.37, and London session highs at 131.87.

USD/JPY bottoms out at 99.20 region

The USD/JPY foreign exchange weakened Tuesday morning during Asian trading, recently bottoming out 99.23 (session low).
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US Dollar Index sliced through key short-term support at 82.42 Monday

With the troubling weekend news flow and disappointing housing and economic activity data Monday, the US Dollar Index finally succumbed to the pressure and closed below key short-term support at 82.42.
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