EUR/JPY weaker after ECB, under 117.00

Matías Salord FXStreet

EUR/JPY weakened after the decision of the European Central Bank (ECB) and Draghi’s press conference and dropped back below 117.00.

EUR/JPY eyes daily lows

The pair dropped sharply earlier after Bank of Japan Governor Kuroda, rejected the introduction of “helicopter money” and boosted the yen across the board. EUR/JPY tumbled from 118.48 (highest level in four weeks) to 116.15. It recovered and rose back above 117.00 but after ECB events it weakened.

Currently, it trades at 116.70/75, more than a hundred pips below yesterday’s closing price. The Euro is the worst performer so far during the American session. The decline took place despite the fact that Draghi did not signal imminent further stimulus from the ECB.

Technical levels

To the downside support levels might be seen at 116.50/55 (July 20 low), 116.10 (daily low) and 114.80 (June 30 high). On the opposite direction, resistance might be located at 117.00, 117.50 (American session high) and 118.40/50 (July highs).

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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