Saturday, November 7, 2015

EUR/JPY about to post lowest weekly close since April

FXStreet (Córdoba) - The euro is about to end the week away from the lows versus the yen, but is still under the level it had seven days ago, headed toward the fourth weekly decline in a row and the lowest close since April.

EUR/JPY remains with a bearish bias and under pressure. From a technical perspective, last week broke a key support area around 132.50 opening the doors to a bigger decline. The slide of USD/JPY limited the decline in EUR/JPY.

From a fundamental view, the euro continues to be affected by expectations of more stimulus from the European Central Bank. The Bank of Japan could also take more expansive action.

EUR/JPY: Monthly lows and recovery

On Friday after the release of the US employment report, the pair dropped quickly to 131.47, hitting the lowest level since April but then rebounded quickly recovering most of the losses. Currently is trading at 132.10/20, down 0.20% for the day. The recovery from monthly lows found resistance at 132.40/45, where the hourly 20-SMA was standing.
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