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EUR/USD, EUR/JPY and USD/JPY hold at support ahead of US employment data

​​Outlook on EUR/USD, EUR/JPY and USD/JPY ahead of US NFPs.

USD/JPY Source: Bloomberg

​​​EUR/USD probes minor support zone ahead of US employment data release

EUR/USD's reversal off Wednesday’s four-month high at $1.1017 on softer eurozone inflation, which brought forward European Central Bank (ECB) rate cut expectations, provoked six straight days of losses with the mid-September and early-November highs at $1.0769 to $1.0756 being revisited.

For now this support area holds, but if it were to give way, the 24 October high at $1.0695 would be in sight.

Resistance can be seen between Thursday’s high and the 200-day simple moving average (SMA) at $1.0817 to $1.0824. Further up the 22 November low at $1.0853 may also act as resistance, were it to be reached at all.

EUR/USD chart Source:
EUR/USD chart Source:

​Sharp EUR/JPY sell-off find technical support

EUR/JPY's swift decline off its ¥164.30 November peak amid ECB rate cut expectations accelerated on Thursday when the Bank of Japan (BoJ) Governor Kazuo Ueda’s hinted at ending the country’s negative interest-rate policy.

​The cross dipped to the 200-day SMA at ¥153.98 which offered support. While Thursday’s low at ¥153.18 holds, a minor bounce may take it back to the ¥156.00 area, above which resistance can be found around the mid-October low at ¥157.05.

​Failure at ¥153.18 would engage the July tough at ¥151.42.

EUR/JPY chart Source:
EUR/JPY chart Source:

​USD/JPY tries to hold at fresh four-month low

USD/JPY's descent has been accelerated by speculation that the BoJ could phase out its massive stimulus next year and has so far taken it to ¥141.63, to around the 200-day SMA at ¥142.29 which acts as support.

​Weaker-than-expected Japan Q3 gross domestic product (GDP) amid a current account surplus which exceeded forecasts and remained positive for a ninth consecutive month have led to a minor recovery rally with USD/JPY revisiting its late-August and early-September lows at ¥144.45 to ¥144.54. Together with the ¥145.07 late-June high, this area may cap the current bounce, though.

​A fall through ¥141.63 would put the July low at ¥138.08 on the map.

USD/JPY chart Source:
USD/JPY chart Source:

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