EUR/JPY tries to recover from the key support of 140.00

FXStreet (Moscow) - EUR/JPY started the day at 140.65 and dropped to intraday lows at 140.04 on the back of risk aversion, but the downside momentum faded away and the cross recovered to 140.30.

EUR/JPY is sensitive to PMI data

EUR/JPY tried to return to the area below 140.00 yesterday, but managed to close above this important level due to EUR strengthening on the back of poor US data. The cross is pretty volatile on the intraday scale as there are different forces influencing its dynamic. Japan published the trade balance data earlier today, that showed the continued deterioration of the Japanese trade position. While investors looked the other way, this poor news may undermine JPY in the long run. Chinese PMI triggered anti-risk sentiments that pushed Yen higher across the board and pushed EUR/JPY close to the support level of 140.00, but the cross bumped into strong demand ahead of the said key level and recovered to 140.30. The key support is still at 140.00. This level is likely to limit the downside unless the EU PMI published during European hours is much worse than expected. The upside will be capped by 140.80.

What are today’s key EUR/JPY levels?

Today's central pivot point can be found at 140.45, with support below at 139.96, 138.51 and 139.01, with resistance above at 140.90, 141.40, and 141.85. Hourly Moving Averages are mixed, with the 200SMA at 139.54 and the daily 20EMA at 139.84. Hourly RSI is neutral at 41.