EUR/JPY challenges 128.00

FXStreet (Edinburgh) - The offered tone around the single currency is growing bigger at the end of the week, now dragging EUR/JPY to the vicinity of the key support at 128.00.

EUR/JPY in 3-week lows

The cross is navigating levels last seen in mid-March so far, dropping from Monday’s peaks just above the 131.00 handle. It will be a very light calendar in the euro area today, leaving the cross to the mercy of the risk trends amidst a generalized sentiment towards the US dollar.

On the technical side, Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted “. The 1st April low at 128.40 has been eroded and the failure here should trigger losses to the 126.91 March low which is regarded as the break down point to the June 2013 low at 124.24 en route to the 122.64/121.95 200 week moving average and 50% retracement”.

EUR/JPY key levels

As of writing the cross is losing 0.33% at 128.09 with the next support at 127.28 (low Mar.18) and then 127.20 (low Mar.16). On the flip side, a surpass of 128.86 (hourly low Apr.9) would expose 129.85 (Tenkan Sen) and finally 130.25 (Kijun Sen).