EUR/JPY buyers resist above 132.20

FXstreet.com (Barcelona) - The EUR/JPY foreign exchange cross rate is currently trading at 132.42 near session highs off early NY session and fresh 3-day lows at 131.70, retracing from Wednesday's almost 4-month highs at 133.40 on the back of Yen strength.

EUR/JPY favoring another leg lower

“The hourly chart shows price finally found support in its 200 SMA, currently around 131.70 while indicators head higher in negative territory, approaching their midlines,” said Valeria Bednarik, Chief Analyst at Fxstreet.com, adding: “100 SMA caps the upside now a few pips above current price, so further advances are now required to confirm a recovery. In the 4 hours chart indicators head strongly south below their midlines, favoring another leg lower rather than a recovery: the pair has an unfilled gap from the weekly opening around 130.60, probable bearish target in case of renewed bearish interest.”

EUR/JPY key technical levels

Bednarik finds support levels at: 131.70, 131.30 and 130.60, while resistance levels at: 132.50, 133.00 and 133.45.

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