Wednesday, October 28, 2015

EUR/JPY: Bears loosen grip, recovers to 133

FXStreet (Mumbai) - The EUR/JPY cross halted its downslide near Tuesday’s low and attempts recovery in a bid to regain 133 handle, as both EUR and JPY try to recover lost ground versus the greenback ahead of the Fed decision.

EUR/JPY trades above hourly 20-SMA

Currently, the EUR/JPY pair loses -0.07% to 132.97, recovering from close to fresh seven-week lows struck at 132.70 in Asia. The cross in the EUR/JPY remains in the red mainly due to the renewed strength seen in the yen versus the US dollar as traders flocked to safety assets while the conclusion of Fed meeting looms.

While the EUR/USD pair erased losses and re-attempts 1.1050 levels, which lends support to the ongoing recovery in EUR/JPY.

Calendar-wise, there is little on cards to be offered in the day and therefore the main focus will remain on the FOMC decision for fresh incentives.

EUR/JPY Technical Levels

To the downside, the cross finds immediate support at 132.70/67 (daily low + Oct 27 Low), below that 132.53/51 (Sept 7 Low + daily S1), could act as a major support. To the upside, the next resistance lies at 133.23/25 (daily pivot+ hourly 50-SMA), above which it could extend gains to 133.47 (5-DMA).
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