EUR/JPY: recoveries are shallow towards the 132 handle

Currently, EUR/JPY is trading at 131.97, down -0.19% on the day, having posted a daily high at 132.41 and low at 131.66.

EUR/JPY is looking in at the 132 handle again on a US session of light price action within a 30 pip range, so far. The euro has seen the bears attempt a leg below the 1.18 handle but so far has been able to find any follow through while USD/JPY is consolidating after a break out of the recent and familiar range son the 112 handle. 

The low in USD/JPY since the break was to 111.65 and recoveries capped 111.87. Meanwhile, despite scoring fresh highs, stocks on Wall Street turned south in early trade and subsequently,  the yen remains robust.

EUR/JPY levels

Analysts at Commerzbank explained that EUR/JPY continues to recover off the 131.70 end of August high. "We suspect that it may be topping out, but this current price action has somewhat neutralised our immediate outlook. While above 131.70 scope remains to retest recent highs at 134.32/58. A move below the 55-day moving average at 131.15 is needed to alleviate upside pressure and retarget the 129.37 September low and the 127.57 August low," the analysts added.