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30 Jul 2015
EUR/JPY: Bears tighten grip in Tokyo, dips to lows near 136
FXStreet (Mumbai) - EUR/JPY stalled post-FOMC minor recovery and fell back into the red at Tokyo open, retesting 136 barrier, largely as broad based US dollar strength riding higher on the back of FOMC statement released Wednesday overnight continued to weigh on the shared currency.
EUR/JPY slips from 136.16
Currently, the EUR/JPY pair trades -0.10% lower at fresh session lows of 135.98, unable to sustain gains above 136 handle despite a dovish FOMC. The cross in EUR/JPY came under renewed pressure at Tokyo open as Asian sellers reacted to the FOMC statement bringing in fresh offers near 136.20 levels.
Moreover, the EUR/JPY cross was sold-off largely on the back of EUR/USD weakness after the USD bulls were bolstered by the FOMC statement which talked up on the US economy, making no changes to the monetary policy settings.
On the other handle, the losses were restricted by rising USD/JPY which kept the yen bulls undermined ahead of the crucial US GDP and trade balance figures due later in the New York session.
EUR/JPY Technical Levels
To the upside, the next resistance is located at 136.93 (July 29 High) levels and above which it could extend gains 137.17 (July 27 High) levels. To the downside immediate support might be located at 135.69 (July 27 Low) below that at 135.48 (July 24 Low) levels.
EUR/JPY slips from 136.16
Currently, the EUR/JPY pair trades -0.10% lower at fresh session lows of 135.98, unable to sustain gains above 136 handle despite a dovish FOMC. The cross in EUR/JPY came under renewed pressure at Tokyo open as Asian sellers reacted to the FOMC statement bringing in fresh offers near 136.20 levels.
Moreover, the EUR/JPY cross was sold-off largely on the back of EUR/USD weakness after the USD bulls were bolstered by the FOMC statement which talked up on the US economy, making no changes to the monetary policy settings.
On the other handle, the losses were restricted by rising USD/JPY which kept the yen bulls undermined ahead of the crucial US GDP and trade balance figures due later in the New York session.
EUR/JPY Technical Levels
To the upside, the next resistance is located at 136.93 (July 29 High) levels and above which it could extend gains 137.17 (July 27 High) levels. To the downside immediate support might be located at 135.69 (July 27 Low) below that at 135.48 (July 24 Low) levels.