EUR/JPY bouncing off lows above 132.80

FXstreet.com (Chicago) - EUR/JPY fell at the closing of Wall Street and shortly after politicians made comments on no progress in Washington to solve the debt ceiling issue and talks.

Downgraded?

The yen strengthens on strong reactions among market participants who remain attentive to every comment taking place in Washington. Fitch decided to put the US on rating watch negative prior to this October 17th deadline.

EUR/JPY Technical Levels

Technically speaking, the pair is offered at 132.79 and oscillates between supports aligned at 132.58 (September 30th lows), 132.16 (October 8th highs) ahead of 131.62 (September 15th lows) and the resistances set at 133 (October 12th lows), 133.22 (October 2nd highs) followed by 133.51 (October 1st highs). According to the FXstreet.com trend index, the pair is slightly bearish on one-hour timeframe analysis below the EMA20.

USD/CAD go with or not to go with?

USD/CAD has rallied on the day and markets may want to see clear evidence of strength (above 1.0420) before jumping on board the move up.
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