EUR/JPY – What’s next after 5-day losing streak

EUR/JPY cross is on the back foot in Asia as bid tone around Yen gathered pace, although losses are being capped around 112.50 levels.

Weekly loss on cards

At 112.60, the cross appears on track for a weekly loss given the pair is trading well below the weekly opening rate of 113.96 levels. The EUR/USD pair suffered sharp losses in the previous two session, while the USD/JPY pair traded sideways above 101.00 levels, thus resulting in a drop in the EUR/JPY cross.

The data docket is thin in Europe with just German factory orders and French current account numbers due for release. Later in the US session, FX markets may see major action following the release of US monthly non-farm payrolls release.

EUR/JPY Technical Levels

A break below 112.48 (previous day’s low) would expose 112.22 (23.6% of Brexit day high low), under which losses could be extended to 110.824 (July 6 low). On the other hand, a breach of resistance at 112.84 (daily high) would open doors for a test of 113.64 (Aug 3 high) and 114.45 (July 26 low).