- EUR / JPY accelerates its downtrend to reach levels below 129.00.
- The euro suffers amid a more bitter market environment and weak macroeconomic data.
- The breach of the 129.50 / 60 support zone has increased the negative sentiment for the euro.
The euro accelerated its reversal against the Japanese yen on Thursday. The pair has fallen 0.6% so far this day, reaching levels below 129.00 after hitting a high of 130.50 on Wednesday.
The euro falls further due to risk aversion
The common currency is losing ground against the safe-haven yen during Thursday’s US market session, with major stock indices turning negative after a slightly positive open.
In Europe, macroeconomic publications have not offered support to the common currency. German unemployment figures have disappointed, showing a smaller-than-expected drop in the change in unemployment, while rising energy prices have pushed annual inflation to 4.1%, its highest level in 29 years.
EUR / JPY sinks below support area at 129.50 / 60
Technical indicators are pointing lower after the pair broke through the support area at 129.50 / 60. Now the pair could find support at 128.75 (September 22 high) before testing a major support area at 127.90 / 128.00 (August 19 and September 23 low).
On the upside, the pair should turn back above the aforementioned 129.50 / 60, where the 20 and 100-day SMAs are, to ease downward pressure and attempt to hit 130.00 before targeting a key resistance area between 130.50 and 130.75. (highs of 3,8 and 29 September).
Technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
