EUR/JPY is digging the bottom

FXStreet (Moscow) - EUR/JPY reached 6-week low at 136,22 in the morning, though rebounding to 136.44 at the moment.

EUR/JPY ignores good EU data

It looks like new multi-week lows may be reached in the nearest hours. EUR/JPY moved down yesterday as the Yen was broadly supported by anti-risk sentiments. Eurozone published better than expected PMI numbers, which helped the single currency to restore some ground across the board, but EUR/JPY traders pretended they didn’t notice anything as the cross was under selling pressure during the European hours. Though they will hardly be so indifferent to the PPI data published today, especially if they confirm the deflation threat in the currency union. The increased pressure may push the cross down to 135.95 and even to 135.27, while the corrective upside is likely to be limited by 137.04 pivot point.

What are today’s key EUR/JPY levels?

Today's central pivot point can be found at 137.04, with support below at 135.95, 135.27 and 134.17, with resistance above at 137.02, 138.82, and 139.50. Hourly Moving Averages are mixed, with the 200SMA at 137.94 and the daily 20EMA at 140.39. Hourly RSI is neutral at 57.

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