EUR/JPY: bull's commitments fading at the 132 handle
|- EUR/JPY struggles to hold onto the 132 handle.
- Yen has found some traction on risk-off.
EUR/JPY struggles to hold onto the 132 handle in Tokyo with a resurgence in the Japanese yen on the back of some bearishness around the US economy with respect to the recent article from the Washington Post that states that the Senate GOP will to consider a 1 Yr Corporate Tax cut delay. Currently, EUR/JPY is trading at 131.91, down -0.12% on the day, having posted a daily high at 132.16 and low at 131.90. The overall theme overnight was slightly risk-off and the yen benefitted from that.
- USD/JPY drops on Washington Post: 'Senate GOP said to consider 1 Yr Corporate Tax cut delay'
- Wall Street pares early gains to close lower amid tax plan uncertainty
Meanwhile, the euro is firming up below the 1.16 handle after making fresh lows in the 1.1550 regions while ECB President Draghi explained that the condition for a deposit rate hike has not yet been met. Subsequently, this undermined the euro in the face of falling Euro yields while the Bunds broke the primary uptrend.
Other EZ data that was mixed overnight
EU retail sales surged though for the month of September by 0.7% with an annual growth of 3.7%. However, Germany's Industrial Production dropped -1.6% in Sep against previous 2.6% advance. Y/Y, production rose 3.6%, but below expectations of 4.4%.
EUR/JPY levels
Analysts at Commerzbank explained that EUR/JPY’s near-term rebound appears to have terminated 133.135:
"A close below 131.68 would then target the mid-September low at 130.64, the September low at 129.40 and the August low at 127.57. Bottom of the cloud support lies at 130.98. Where are we wrong near term? A move above the 134.58 November 2015 high would target the 2008-2017 resistance line at 140.90/141.00."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.