EUR/JPY sell-off overdone, the rebound is not ruled out

FXstreet.com (Moscow) - After a sharp drop overnight reaching 7-week low at 139.04, EUR/JPY calmed down, and rebounded to 139.80 area.

The environment for EUR/JPY rebound

The cross showed steep move down on the appetites for safe-havens due to still unstable positions of EM assets. Nevertheless, today the pair may get some different food for thoughts. The German unemployment report as well as CPI data are scheduled for release. The decrease of the former, and the rise of the latter may be the exact environment for renewed interest to the pair. In this case we may see a move higher with initial target at 140.90 resistance level. The downside is limited by support levels at 138.65, and 137.72.

What are today’s key EUR/JPY levels?

Today's central pivot point can be found at 139.97, with support below at 138.65, 137.72 and 136.39, with resistance above at 140.90, 142.23, and 143.16. Hourly Moving Averages are bearish, with the 200SMA at 140.93 and the daily 20EMA at 141.30. Hourly RSI is neutral at 35.

GBP/USD took a pause to map out further direction

GBP/USD devoted its morning to 1.6560 level, not daring to deviate from it by more than 10 pips.
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