EUR/JPY – Rejected at 50% Fibo

Recovery in Japanese Yen following Hamada’s comments ensured the EUR/JPY cross failed to sustain above 115.60 (50% of Brexit day high-low).

Trades below 5-DMA

The retreat from the session high of 115.68 has taken the pair below 5-DMA level of 115.53 levels. Still, the EUR/JPY cross is trading on the positive note, courtesy of the positive action in the EUR/USD pair.

Japanese PM Abe advisor Hamada comments meant low probability of BOJ action this month. Thus, Yen managed to take back part of its losses.

EUR/JPY Technical Levels

The cross currently trades around 115.45. A break above 115.60 (50% Fibo of Brexit day high-low) would open doors for a spike to 116.36 (Sep 2 high). On the other hand, a breakdown of support at 115.25 (Asian session low) could yield a move lower to 114.38 (50-DMA).