EUR/JPY tests 100-DMA at 131.21, short decisive break below
Euro weighed down by German political news, as Merkel fails to pull together a coalition government.
A new election now looking a distinct possibility, which is likely to keep pressure on the single currency.
EUR/JPY down 0.46% on the day, edges higher from session lows at 131.17.
The pair finds strong support in the 130.98 to 131.20 region, break below will see weakness.
Next major support below 100-DMA lies at 129.86 (23.6% Fib retrace of 114.85 to 134.50 rally).
Break above 5-DMA at 132.81 could see minor upside till 133.88.
Focus now on Draghi's testimony on the economy and monetary policy before the European Parliament Economic and Monetary Affairs Committee.
Support levels - 131.21 (100-DMA), 131, 130.60 (Sept 15 low), 129.86 (23.6% Fib retrace of 114.85 to 134.50 rally)
Resistance levels - 132.61 (20-DMA), 132.81 (5-DMA), 133
Good to go short on decisive break below 100-DMA at 131.21, SL: 132.80, TP: 131/ 130.60/ 129.85.
A new election now looking a distinct possibility, which is likely to keep pressure on the single currency.
EUR/JPY down 0.46% on the day, edges higher from session lows at 131.17.
The pair finds strong support in the 130.98 to 131.20 region, break below will see weakness.
Next major support below 100-DMA lies at 129.86 (23.6% Fib retrace of 114.85 to 134.50 rally).
Break above 5-DMA at 132.81 could see minor upside till 133.88.
Focus now on Draghi's testimony on the economy and monetary policy before the European Parliament Economic and Monetary Affairs Committee.
Support levels - 131.21 (100-DMA), 131, 130.60 (Sept 15 low), 129.86 (23.6% Fib retrace of 114.85 to 134.50 rally)
Resistance levels - 132.61 (20-DMA), 132.81 (5-DMA), 133
Good to go short on decisive break below 100-DMA at 131.21, SL: 132.80, TP: 131/ 130.60/ 129.85.