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.

Guillermo Alcala FXStreet

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

EUR/JPY

Overview
Today last price	128.88
Today Daily Change	-0.98
Today Daily Change %	-0.75
Today daily open	129.86

Trends
Daily SMA20	129.62
Daily SMA50	129.53
Daily SMA100	130.82
Daily SMA200	129.72

Levels
Previous Daily High	130.48
Previous Daily Low	129.68
Previous Weekly High	129.85
Previous Weekly Low	127.93
Previous Monthly High	130.42
Previous Monthly Low	127.93
Daily Fibonacci 38.2%	129.98
Daily Fibonacci 61.8%	130.17
Daily Pivot Point S1	129.53
Daily Pivot Point S2	129.21
Daily Pivot Point S3	128.73
Daily Pivot Point R1	130.33
Daily Pivot Point R2	130.8
Daily Pivot Point R3	131.13

Author

Guillermo Alcala

FXStreet

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

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