EUR/JPY – Offered below 50-DMA

EUR/JPY pair failed to hold above 50-DMA level of 114.43 following which it was offered to a low of 113.93 on broad based JPY rally.

Hovers around 38.2% Fibo

The cross is currently trading around 114.09 (38.2% Fibo of Brexit day high-low). The bid tone around the Japanese Yen strengthened on account of the pull back in the treasury yields following dovish comments from Fed’s Brainard.

Furthermore, EUR/USD has not been able to do anything significant despite dovish Brainard, thus leaving doors open for a sell-off in the EUR/JPY cross.

EUR/JPY Technical Levels

Acceptance below 114.00 level would open doors for a slide to 112.79 (Aug 24 low) and 112.22 (23.6% of Brexit day high-low). On the higher side, breach of 114.43 (50-DMA) would expose resistance at 115.60 (50% of Brexit day high-low). This is followed by a major hurdle at 116.00 (zero figure).