EUR/JPY – retreats to 10-DMA

EUR/JPY cross retreated to 10-DMA level of 115.06 in Asia as Yen outperformed the single currency amid broad based USD weakness.

Rebound from 50-DMA

The cross recovered from 113.83 (50% Fibo of 119.205-118.464) on Wednesday and extended the recovery further to a high of 115.45 levels on Thursday after Draghi disappointed markets by keeping the policy unchanged. Moreover, Draghi also said there is no need for further stimulus and put the onus on governments to do more.

The retreat in Asia could be explained by the drop in the USD/JPY pair to near 102.00 levels from the NY session high of 102.60.

EUR/JPY Technical Levels

A break of resistance at 1145.45 (yesterday’s high) would open doors for 115.68 (September high), above which the cross may target 116.28 (23.6% of 119.205-118.464). On the lower side, breach of support at 115.00 (zero figure) could yield a re-test of 113.83 (50% Fibo of 119.205-118.464), under which a major support is seen directly at 112.74 (multiple weekly lows).