5 Aug 2015
EUR/JPY threatens to drop below 135.00
FXStreet (Mumbai) - The EUR/JPY pair dropped in the early European session, trading within a touching distance from the 135.00 handle ahead of the services PMI reports release across the Eurozone.
Third straight session of losses
As of now, the cross is pointing to a third consecutive session of losses. The common currency was ditched in the previous two sessions on the back of the rising rate hike expectations in the US. Meanwhile, the Japanese Yen remained largely resilient, thereby leading to a drop in the EUR/JPY cross. The Euro could be pushed lower in case the services PMI reports fail to meet the market expectations.
During the US session, the ADP employment report and ISM non-manufacturing report could also influence the pair.
EUR/JPY Technical Levels
The pair currently trades around 134.10. The immediate resistance is located at 135.53 (July 30 low), followed by a major hurdle at 136.94 (200-DMA). On the other hand, support is seen at 135.00, under which the pair could target 134.24 (100-DMA).
Third straight session of losses
As of now, the cross is pointing to a third consecutive session of losses. The common currency was ditched in the previous two sessions on the back of the rising rate hike expectations in the US. Meanwhile, the Japanese Yen remained largely resilient, thereby leading to a drop in the EUR/JPY cross. The Euro could be pushed lower in case the services PMI reports fail to meet the market expectations.
During the US session, the ADP employment report and ISM non-manufacturing report could also influence the pair.
EUR/JPY Technical Levels
The pair currently trades around 134.10. The immediate resistance is located at 135.53 (July 30 low), followed by a major hurdle at 136.94 (200-DMA). On the other hand, support is seen at 135.00, under which the pair could target 134.24 (100-DMA).