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EUR/JPY: Bulls taking charge, heading for Jan lows

FXStreet (Guatemala) - EUR/JPY is currently trading at 128.94 with a high of 129.00 and a low of 127.67.

EUR/JPY is struggling at this barrier from a steady clime otherwise in recent trading from 128.60 in an extension from 127.80 today. A move through this level will be critical and signify that the bulls are committed for a correction in the cross with 130 as the psychological target.

On a reversal and back south, a test of the support band offered by the 200 month ma and Fibonacci retracement at 128.11/52 (38.2% retracement of the move up from 2012) would be first stop, as noted by Karen Jones, chief analyst at Commerzbank. She explained on the way up, "Initial resistance lies at 130.16, the January low, 132.00, the 2nd February low ahead of 132.60, a 3 month downtrend."

What’s ahead: USD expected to resume the rise

The American session saw the greenback extend its downside correction as disappointing US retail sales figures added pressure. EUR/USD climbed back above 1.0600 after hitting a fresh 12-year low of 1.0499 while USD/JPY dropped temporarily below 121.00 before bouncing. The pound was among the worst performers of the day, falling to a 20-month low of 1.4849, weighed by dovish Carney’s comments.
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