FxWirePro: EUR/JPY breaks below daily cloud, hovers around 61.8% Fib ahead of ECB policy meeting

EUR/JPY chart on Trading View used for analysis

• The single currency remians under pressure heading into today's ECB October monetary policy meeting due at 1145 GMT.
   
• EUR/JPY hit session lows at 127.50 before paring some losses to currently trade at 127.83.
   
• Analysts expect the ECB to leave policy on hold, and to provide no new information regarding the conclusion of QE later this year.
   
• Focus will be on the tone of the press conference, as Draghi is likely to acknowledge that downside risks have somewhat intensified.
   
• EUR/JPY trades with a bearish bias, technicals support downside. Scope for test of 78.6% Fib at 126.44.

Call update: Our previous call (https://www.econotimes.com/FxWirePro-Euro-weakens-across-the-board-after-dismal-PMI-data-stay-short-EUR-JPY-target-618-Fib-1447982) has hit TP1.

Recommendation: Book partial profits at lows. Holds for further downside.

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.