- Euro with some weakness in the market that favors a fall in the EUR / JPY.
- Yen remains firm, despite stability in the markets.
EUR / JPY is falling for the third day in a row. It recently hit the lowest level in twelve days at 123.56, and bounced slightly. It is trading at 123.70, 110 pips below where it closed last week.
The Wednesday’s fall in the cross is due to some weakness in the euro, led by the decline in the EUR / GBP. In turn, the yen remains firm, without significant changes throughout the market. Although the stock markets are operating, in mixed terrain, in the foreign exchange market, there is a manifestation of certain fears that are reflected in the relative stability of the yen, the rise of the dollar and the weakness of emerging currencies.
Looking ahead to the next few hours, traders will closely follow the presentation of corporate results for the third quarter, Brexit news, and the US wholesale inflation report. Several Federal Reserve officials will also speak: Barkin, Clarida , Quarles and Kaplan.
The EUR / JPY is trading back below the 20-day moving average of 123.75 / 80. In case of extending the fall, the next strong support is the 123.30 area, which is a horizontal level and where the 100-day moving average is also passing. A break below would intensify downward pressures. In the opposite direction, 123.95 is the immediate resistance followed by 124.25 and 124.50.
Credits: Forex Street
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