- 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
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