EUR/JPY trading close to intra-day low of 133.23

FXstreet.com (Barcelona) - EUR/JPY has steadily declined since the Asia open high of 133.95, and is now trading at 133.32, down 0.43%, and close to the daily low at 133.23.

EUR/JPY an opportunity to fade?

The pair was dragged lower today on softer EMU MOM Industrial Production and Spanish HICP data, and comments from ECB Board Member Praet who suggested that all options were on the table for the ECB, including negative rates. Ray Littlestone of Forex Live feels that the push lower represents a good opportunity to fade the move, commenting, “USD/JPY is on the march and we know the euro gets homesick when it gets below 1.3400. Tight stop at 132.90 but will move it up as it goes.” This evening, Traders will be paying attention to Japanese GDP which falls at 23:50 GMT.

How strong has EUR/JPY been?

The hourly FXstreet proprietary tools the OB/OS Index and Trend Index are showing the pair to be neutral and strongly bearish respectively. Hourly RSI sits at 41, with ADX at 26, the 200 SMA at 132.95 and flat, while the EMA for the past 20 days is at 133.61 and trending lower.

What EUR/JPY levels and patterns have to be considered?

Today’s pivot point sits at 133.61, with support below at 133.19 (S1), 132.48 (S2), and 132.06 (S3), and resistance above at 134.33 (R1), 134.75 (R2) and 135.46 (R3). Special attention should be paid to the region between 133.38-133.04 where sever technical levels are clustered.

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