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1 Sep 2015
EUR/JPY bounces-off fresh 6-week lows, back above 135
FXStreet (Mumbai) - The cross in the EUR/JPY extends its recovery from fresh six-week lows and floats above 135 handle ahead of US open, as JPY bulls take a breather after the sharp rally.
EUR/JPY rises from 134.85
Currently, the EUR/JPY pair trades -0.52% lower at 135.17, recovering slightly from fresh six week lows posted at 134.85 in the European morning. The EUR/JPY cross is consolidating to the downside as we progress towards the US opening bells as the yen be preferred as a safe-haven asset versus its European counterpart.
As for today’s trading so far, both the US dollar and equities reacted negatively to the poor China economic news, bringing risk-off sentiment to the market. The bearish sentiment also influenced European equities later on, while so-called safe-haven assets like the Japanese yen soared amid flight to safety.
Looking ahead, markets now shift their attention towards a set of US manufacturing sector data which may have major impact on the USD moves, eventually influencing EUR/JPY.
EUR/JPY Technical Levels
To the upside, the next resistance is located at 136.24 (Today’s High) levels and above which it could extend gains 136.63 (Aug 28 High) levels. To the downside immediate support might be located at 134.85 (Today’s Low) below that at 134.44 (July 21 Low) levels.
EUR/JPY rises from 134.85
Currently, the EUR/JPY pair trades -0.52% lower at 135.17, recovering slightly from fresh six week lows posted at 134.85 in the European morning. The EUR/JPY cross is consolidating to the downside as we progress towards the US opening bells as the yen be preferred as a safe-haven asset versus its European counterpart.
As for today’s trading so far, both the US dollar and equities reacted negatively to the poor China economic news, bringing risk-off sentiment to the market. The bearish sentiment also influenced European equities later on, while so-called safe-haven assets like the Japanese yen soared amid flight to safety.
Looking ahead, markets now shift their attention towards a set of US manufacturing sector data which may have major impact on the USD moves, eventually influencing EUR/JPY.
EUR/JPY Technical Levels
To the upside, the next resistance is located at 136.24 (Today’s High) levels and above which it could extend gains 136.63 (Aug 28 High) levels. To the downside immediate support might be located at 134.85 (Today’s Low) below that at 134.44 (July 21 Low) levels.