8 Apr 2015
EUR/JPY back below 130
FXStreet (Mumbai) - EUR/JPY fell back in the negative territory in the European morning, hovering around 130 barrier, as the yen regained strength versus the shared currency after Bank of Japan (BOJ) Governor sounded more optimistic on Japanese economic recovery and inflation reaching its 2% target this fiscal year.
EUR/JPY struggles around 20-DMA
Currently, the EUR/JPY cross traded lower by -0.11% at 129.96 levels, testing lows near 129.90 levels. The cross in EUR/JPY edged lower as the yen extended gains versus the shared currency after BOJ Kuroda’s comments at the BOJ press conference, stating that CPI is likely to reach 2% in fiscal year 2015/16, and that long-term inflation expectations are rising. He also repeated that Japan’s economy is recovering at a moderate pace and overall was optimistic on the investment front as well.
On the other hand, the EUR/USD pair tries to recover and holds above 1.08, with EUR bulls retreated slightly after downbeat German factory data. Meanwhile, traders now eye EMU retail sales data for fresh cues on the cross.
EUR/JPY Levels to consider
To the upside, the next resistance is located at 130.42 (5-DMA) and above which it could extend gains to at 131 levels. To the downside immediate support might be located at 129.90 levels below that at 129.49 levels.
EUR/JPY struggles around 20-DMA
Currently, the EUR/JPY cross traded lower by -0.11% at 129.96 levels, testing lows near 129.90 levels. The cross in EUR/JPY edged lower as the yen extended gains versus the shared currency after BOJ Kuroda’s comments at the BOJ press conference, stating that CPI is likely to reach 2% in fiscal year 2015/16, and that long-term inflation expectations are rising. He also repeated that Japan’s economy is recovering at a moderate pace and overall was optimistic on the investment front as well.
On the other hand, the EUR/USD pair tries to recover and holds above 1.08, with EUR bulls retreated slightly after downbeat German factory data. Meanwhile, traders now eye EMU retail sales data for fresh cues on the cross.
EUR/JPY Levels to consider
To the upside, the next resistance is located at 130.42 (5-DMA) and above which it could extend gains to at 131 levels. To the downside immediate support might be located at 129.90 levels below that at 129.49 levels.