Pair’s Support Arrives around 131.00
EUR/JPY pulled back after it had reached new heights in the 133.50 region. Analysts look at the pair’s move as a correction only. Yet they expect EUR/JPY to meet initial support in the 131.00 area, May’s lows.
Breaking through this zone presents an opportunity to extend the leg lower to the 130.70 level, where converge the 50-day SMA and the immediate support line, off the March’s low. This area will cap the downside and will trigger some reversion.
A broader outlook on the EUR/JPY pair is as follows: while above the 200-day SMA at 126.80, the long-term outlook for the currency should remain constructive. EUR/JPY traded at 133.01 at the beginning of the trading day. The pair was last seen trading at 132.83. The daily change constitutes so far -0.14%.