EUR/JPY – Supported by 50-DMA, above 38.2% Fibo

EUR/JPY cross managed to hold on to 50-DMA support in the overnight trade and is looking to retake losses largely on the back of a rise in Dollar-Yen pair.

At around 114.40, the cross sits well above 114.09, which is 38.2% Fibo retracement of the Brexit day drop. Repeated rejection at the downward sloping 100-DMA last week finally led to yesterday’s drop to a low of 114.01 levels.

Eyes BOJ speak, Eurozone data & Fed speak

BOJ’s Harada and Governor Kuroda are scheduled to speak today. Later in the day, Eurozone industrial production numbers are expected to hit the wires. However, the main event for the day is speech from Fed’s William Dudley and Esther George. Both are likely to say the doors are open for a rate hike in December.

EUR/JPY Technical Levels

A breakdown below confluence of 50-DMA and 38.2% Fibo at 114.09 would open doors for a 112.79 (Aug 24 low), under which the cross could target 112.00 levels. On the other hand, a rise above 144.76 (10-DMA) would expose 115.05 (5-DMA). A violation there could yield 115.60 (confluence of 100-DMA & 50% Fibo).