FxWirePro: EUR/JPY slips lower from fresh four-month high, overbought conditions keep scope for pullback
FxWirePro: EUR/JPY recovery capped at 200-DMA, German political uncertainty could hamper upside
EUR/JPY chart - Trading View
EUR/JPY was trading 0.35% higher on the day at 129.51 at around 09:15 GMT.
Previous Week's High/ Low: 130.69/ 129.66
Previous Session's High/ Low: 129.35/ 128.60
According to data published bt Eurostat, Eurozone final CPI for August came in at 3% on a yearly basis, matching flash estimate and consensus.
Core CPI also matched original estimates and 1.6% during the reported month.
On a monthly basis, the bloc’s CPI printed at 0.4%, while the core CPI numbers came in at 0.3%, both meeting market expectations.
Euro little changed after CPI data. German political uncertainty weighs on the upside as investors grow increasingly skittish ahead of nation's upcoming general election.
- EUR/JPY bounced off from monthly lows with 'Hammer' formation on Thursday's candle
- Recovery in the pair was capped at 200-DMA which is stiff resistance at 129.56
- Price action is below cloud and major moving averages
- Momentum remains bearish, RSI is below the 50 mark
- Volatility is low and shrinking and could see major shift in trend
Major Support and Resistance Levels:
Support - 128.27 (55-week EMA), Resistance - 129.56 (200-DMA)
Summary: EUR/JPY was trading shy of 200-DMA, retrace above will negate any further downside. Rejection at 200-DMA will see downside resumption.