- The euro fell against the yen, the dollar and the pound on Tuesday.
- EUR / JPY reverses Monday’s bullish rally and resumes the correction.
EUR / JPY is declining modestly on Tuesday, pushing for a lower EUR / USD. The price of the cross reached 131.28, the lowest level in a week and then rebounded approaching the 131.50 area.
On Monday the crossing had climbed, reaching levels above 132.00. But when it looked like it could go to test the year highs located at 132.35 (April 29 high), it reversed erasing the day’s gains, and closed below 131.70. On Tuesday it resumed the correction, setting new lows.
At the moment the bearish tone predominates, although if the EUR / JPY manages to hold above 131.35, the euro would avoid a further deterioration in the technical outlook. Below that level, the next support is seen at 130.95 followed by 130.60. On the upside, resistance is seen at 131.65 followed by 131.95.
The negative tone of the EUR / JPY on Tuesday has to do with a fall in the EUR / USD, as the USD / JPY rises supported by a rebound in the yields of the Treasuries, which is giving some support to the cross. High-impact data will not be released in the US, and the focus could be on speeches by Federal Reserve officials.
Technical levels
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