EUR/JPY outlook: Collapses to five-week low on BoJ rate hike signals
|EUR/JPY
EURJPY fell nearly 1% on Tuesday, as yen rose across the board on hawkish talks which may prompt BoJ for more rate hikes.
The pair broke below psychological 170 support, hitting the lowest levels in five weeks and cracked Fibo 76.4% retracement of 167.52/175.42 upleg.
Technical picture weakened further on daily chart, with daily close below 170 handle to add to negative stance.
Bears focus significant support at 169.00 (top of thick rising daily cloud), with penetration of cloud to open way for full retracement of 167.52/175.42 bull-leg.
Meanwhile, bears may face headwinds from daily cloud and pause for consolidation, with 170 level now acting as solid resistance which should ideally cap and keep intact next significant barrier at 170.54 (55DMA/broken Fibo 61.8%).
Res: 170.00; 170.54; 171.00; 171.47.
Sup: 169.00; 168.00; 167.52; 166.92.
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