EUR/JPY struggles to find a floor below 138.00

FXStreet (Moscow) - EUR/JPY bears had a good rest during weekend and now they are pushing the cross down with renewed vigor; the cross started the day at 138.10 and dipped to the support of 137.80 during Asian hours.

To fall, or not to fall

EUR/JPY finished a deeply bearish week as the cross was pressed down both by weakening EUR and strengthening JPY. Basic drivers behind the cross movements will hardly change in the nearest future, though the factors related to single currency may have a greater impact as Japanese macroeconomic calends is nearly barren this week. EZ CPI report published later today might prove us right, especially if the data deviates from flash estimates. Weaker inflation numbers could push EUR down across the board. For EUR/JPY the key target is 137.80 (the low of the previous week). If it survives the test, the cross may start the upside correction towards the initial resistance of 138.00.

What are today’s key EUR/JPY levels?

Today's central pivot point can be found at 138.16, with support below at 137.74, 137.33 and 136.91, with resistance above at 138.57, 138.99, and 139.40. Hourly Moving Averages are bearish with the 200SMA at 138.99 and the daily 20EMA at 139.10. Hourly RSI is bearish at 41.