EUR/JPY chart - Trading View
EUR/JPY erased early gains and slipped into the red after comments by ECB’s Knot took its toll on the euro.
The major was trading 0.12% lower at 125.81 at around 11:50 GMT, down from session highs at 126.14.
ECB Governing Council member Klass Knot commenting on the euro strength said that the ECB is keeping a watchful eye on the exchange rate.
He noted that the central bank has tools to counter any further appreciation in the single currency.
Further, latest forecasts published by Germany’s economic institute DIW showed on Wednesday that Europe’s largest economy probably contracted by 3% in the January to March period.
EUR/JPY major bias is neutral. Price action is hovering around 200H MA. Breach below will see minor weakness.
Daily cloud offers strong support at 125.64. Break below will drag prices further lower. Break above 20-DMA negates bearish bias.
