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EURJPY Technical Analysis 6-Jan-2016


January 06, 2016. 12:06 AM EST- EUR/JPY keeps losses in the mid-Asian trades, although retreats slightly from lows, as the yen trims gains versus the greenback amid a minor-recovery in the Japanese stocks.

Currently, the EUR/JPY pair drops -0.33% to 127.51, recovering slightly from fresh nine-month lows struck at 127.32 earlier this session. The EUR/JPY cross maintains the offered tone on the back of a renewed bout of selling seen in the EUR/USD, after the USD regained lost ground against its major peers.

On the other side, a minor-recovery in the USD/JPY pair helps limit the downside in the cross, now pushing EUR/JPY away from session lows and towards the hourly 5-SMA placed at 127.72.

IN the day ahead, a series of US macro updates will be closely eyed ahead of the FOMC minutes for fresh USD moves, which will eventually impact EUR/JPY.

To the upside, the next resistance lies at 128 (round number), above which it could extend gains to 128.34 (daily pivot). To the downside, the cross finds immediate support at 127.32/25 (daily low/ daily S3), below that 127/126.80 (April 2015 levels), could act as a major support.