- EUR / JPY loses more momentum and falls to 4-week lows.
- The cross finds support around the key 200-day SMA.
- The bounce in the dollar pushed the DXY above 95.00.
The strong bullish momentum in the dollar puts the risk space under further pressure and forces the EUR/JPY to extend the losses to the area of 130.40.
EUR / JPY targets the 200-day SMA near 130.40
EUR / JPY is falling and trading through the multi-week lows area of 130.50 / 40 on Thursday, all in the context of the dollar’s persistent bullish movement.
In fact, and with the US bond markets closed, the Japanese yen maintains a stable performance so far this session, while the stance offered incessantly in the single currency, and the rest of the risk space, drags the cross. downward.
So far, the critical 200-day SMA appears to be limiting the slide for the time being, while a gap in this area could sustainably lead investors to shift the outlook to negative on the short-term horizon.
No noteworthy data on both sides of the ocean, although the European Commission (EC) updated its Macroeconomic Projections and now foresees that the euro area will expand 5% this year and 4.3% in 2022; When it comes to inflation, prices are expected to rise 2.4% this year and 2.2% next.
So far, the cross is shedding 0.14% at 130.54 and a breakthrough of 131.51 (38.2% Fibonacci from October’s high) would expose 131.95 (20-day simple moving average) and then 132.56 (November 4 monthly high) . On the downside, the next support comes at 130.43 (200-day SMA) followed by 130.25 (100-day SMA) and finally 129.43 (78.6% Fibo from October upside).