EUR/JPY – Offered at 5-DMA, turns negative

Offered tone around EUR/JPY gathered pace around 5-DMA level of 113.80 following which the cross fell into losses to trade around 113.50 levels.

Drops below 61.8% Fibo

The decline from the session high of 113.85 to a session low of 113.485 marks a failure to hold above 113.68 (61.8% of 112.08-116.28) levels. The common currency is extending yesterday’s losses given the investors are disappointed due to the fact that policy makers did not discuss QE Taper and intend to run the QE program as long as required, contrary to Bloomberg report released earlier this month which said the bank could taper QE.

Meanwhile, the downside in the cross is being restricted by the up move in the Dollar-Yen pair. With no major data due for release today, the currency pair remains at the mercy of the overall demand for Euros.

EUR/JPY Technical Levels

A break below 113.37 (previoud day’s low) would open doors for 113.07 (76.4% of 112.08-116.28). Next major support is seen directly at 112.60 (Sep 30 low). On the higher side, breach of immediate resistance at 113.68 (61.8% of 112.08-116.28) would expose 113.85 (session high) and 114.00 (zero figure) levels.