EUR JPY declined to session low
10/13/2016 8:57:31 AM
After once failing to hold its up-move beyond 115.00 handle for second straight session, the EUR/JPY cross has now removed Wednesday's tepid recovery gains among common risk-off sentiment.
At present trading at session low around 114.25 region, the cross is now within significant distance of weekly lows support near 114.00 handle as weakness in global equity markets is supporting the JPY’s safe-haven request. Thursday's release of weaker than anticipated Chinese trade balance data rose concerns of China-led global economic slowdown and is weighing on investor sentiment.
In technical view, repeated rejections from 100-day SMA and a consequent break below 114.00 support might turn the pair at risk to expand its downslide in the near-term.
Immediate downside support stays at 114.00 handle, which if broken finally is expected to speed up the slide instantly towards 113.40 intermediate support before the cross breaks below 113.00 round figure mark and head towards testing its next major support near 112.40 region.
On the other hand, 115.00 psychological mark now becomes immediate persistence above which the cross is expected to make a fresh effort towards conquering 100-day SMA persistence near 115.50 region.