EUR/JPY ignores the Japanese data and drifts in a narrow range

FXStreet (Moscow) - EUR/JPY is moving within 40-pips range as the cross moved slightly higher early in the morning, but failed to pass through the resistance at 139.80 and retraced lower.

EUR/JPY may have formed a bottom

EUR/JPY set a new multi-month low at 136.21, but had a first positive weekly close since the end of the year. On a daily basis it looks like the cross has formed the bottom, but we still need to close above 140.00 to negate the bearish sentiments, and settle firmly above 142.00 to switch the the longer term forecast to bullish. On the intraday basis we may see the crds consolidating in a wide range after the sharp upside movements in the end of last week. The bulls need to catch their breath while the bears need to muster strength for a new battle. Japanese current account balance data came out worse than expected but was largely ignored by traders, so there are no obvious fundamental triggers for the cross today. Watch out for technical break-outs and know on effects from EUR/USD and USD/JPY movements. The support comes at 139.20 and followed by 139.00, while the resistance is spotted at 139.80.

What are today’s key EUR/JPY levels?

Today's central pivot point can be found at 139.07, with support below at 138.58, 137.68 and 137.20, with resistance above at 139.97, 140.45, and 141.35. Hourly Moving Averages are bullish, with the 200SMA at 138.42 and the daily 20EMA at 139.71. Hourly RSI is neutral at 70.

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