Tuesday, September 15, 2015

EUR/JPY extends the BOJ-led drop to 135.60, risk-off intensifies

FXStreet (Mumbai) - The Japanese extends keeps appreciating versus the European currency in early dealings, knocking-off EUR/JPY to fresh session lows on the 135 handle.

EUR/JPY falls further from 135.85

Currently, the EUR/JPY pair trades -0.30% lower at fresh session lows of 135.61, moving further away from 136 barrier. The cross in the EUR/JPY remains heavy in the European morning mainly driven by strengthening yen versus the US dollar on the back of less dovish BOJ policy decision than widely anticipated.

While steep losses in the Asian indices with the Shanghai Composite down over -2.5% and the Australia’s the ASX closing -1.26% lower, further fuelled risk-off moods and thus benefitting the safe-demand for the yen.

Moreover, the losses in EUR/JPY were accelerated on the back of a weaker euro versus the US dollar ahead of Germany’s ZEW figures.

Meanwhile, markets now look forward to the BOJ presser for further hints on the monetary policy outlook, which may have major impact on the cross.

EUR/JPY Technical Levels

To the upside, the next resistance is located at 136.41 (Today’s High) levels and above which it could extend gains to 136.63 (Aug 28 High) levels. To the downside immediate support might be located at 135.37 (Aug 26 Low) below that at 135 levels.
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