EUR/JPY’s reversal from 130.50 extends below 129.00
|- EUR/JPY accelerates its downtrend to reach levels sub-129.00.
- The euro suffers amid a sourer market mood and soft macroeconomic data.
- Breach of 129.50/60 support area has increased negative mood for the euro.
The euro has accelerated its reversal against the Japanese yen on Thursday. The pair is 0.6% down on the day so far, reaching levels below 129.00 after having peaked at 130.50 on Wednesday.
The euro drops further on risk-averse trading
The common currency is losing ground against the safe-haven yen during Thursday’s American market session, with the major stock indexes turning negative after a mildly positive opening.
In Europe, macroeconomic releases have failed to offer support for the common currency. German unemployment figures have disappointed, showing a lower than expected decline in the jobless change, while the surging energy prices have boosted yearly inflation to 4.1%, its highest level in 29 years.
EUR/JPY dives below support area at 129.50/60
Technical indicators are pointing lower after the pair pierced the support area at 129.50/60. Now the pair might find support at 128.75 (September 22 high) before testing an important support area at 127.90/128.00 (August 19, September 23 low).
On the upside, the pair should return above the mentioned 129.50/60, where the 20 and 100-day SMA lie, to ease bearish pressure and attempt to reach 130.00 before aiming to a key resistance area between 130.50 and 130.75 (September 3, 8, and 29 highs).
Technical levels to watch
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.