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EUR/JPY inches towards fresh 2-year lows above 129

FXStreet (Mumbai) - EUR/JPY remains undermined in the European session, mostly driven by losses in the shared currency after ECB Chief Draghi’s speeches pushed EUR/USD to fresh 12 year lows.

EUR/JPY likely to retest 129.11

Currently, the EUR/JPY cross traded lower at 129.35 levels, heading towards fresh two year lows reached at 129.11 levels. The cross in EUR/JPY remains pressured as Draghi’s comments knocked of EUR/USD to lowest levels since 2003 below 1.0650, pushing the cross further into losses.

However, a weaker yen versus the US dollar after the greenback scaled fresh multi-year highs, some what keeps EUR/JPY supported.

As of writing, USD/JPY trades higher by 0.24% at 121.42 levels, while EUR/USD trades lower by -0.41% at 1.0651.

EUR/JPY Levels to consider

To the upside, the next resistance is located at 129.96 (Today’s High) and above which it could extend gains to at 131 levels. To the downside immediate support might be located at 129.11 (Today’s Low) levels below that at 127.95 (Aug 2013 Low) levels.

EUR/USD 1.05 is the next big target – SG

Kit Juckes of Societe Generale comments that if Fed’s actions widens the 2-year rate gap to around 200bp next year, then EUR/USD may drop well below parity, with 1.05 being the next big level currently.
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USD/JPY makes another attempt at 121.50

The USD/JPY pair is making another attempt to rise above 121.50, after the failure of the previous attempt had pushed the pair to 121.13 levels. The pair currently trades at 121.41 levels.
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