27 Jan 2014
EUR/JPY recovers ground as Yen weakens
FXstreet.com (Córdoba) - The EUR/JPY erased early losses and rose back to the 140.00, despite a sharp decline in Japan stocks. Currently the pair is trading at 139.95, up around 15 pips from Friday's closing price.
Earlier the EUR/JPY dropped to 139.15, fresh 7-week low but rebounded quickly and accelerated the recovery after the release of the minutes of the Bank of Japan and also trade data from Japan, that showed a record deficit for 2013.
Technical outlook for the EUR/JPY
Last week the pair posted the fourth weekly decline in a row after falling sharply on Friday, confirming a short-term bearish trend. At the moment the pair is fighting to hold above 140.00. If the price rises above last week highs at 142.40, it would be breaking important resistance levels, increasing the possibility of further gains.
A return below last week's lows, that lie at 139.70, could increase the pressure on the Euro. Support levels below lie at 139.15 (daily low) and 138.85 and 138.35 (December 4, 5 low).
Earlier the EUR/JPY dropped to 139.15, fresh 7-week low but rebounded quickly and accelerated the recovery after the release of the minutes of the Bank of Japan and also trade data from Japan, that showed a record deficit for 2013.
Technical outlook for the EUR/JPY
Last week the pair posted the fourth weekly decline in a row after falling sharply on Friday, confirming a short-term bearish trend. At the moment the pair is fighting to hold above 140.00. If the price rises above last week highs at 142.40, it would be breaking important resistance levels, increasing the possibility of further gains.
A return below last week's lows, that lie at 139.70, could increase the pressure on the Euro. Support levels below lie at 139.15 (daily low) and 138.85 and 138.35 (December 4, 5 low).