Forex: EUR/JPY plunges back to May lows

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Forex: EUR/JPY plunges back to May lows

FITITOL--> FXstreet.com (Barcelona) - As the EUR/JPY recovered from Apr-30 low, at 105.46, the pair printed a low at 105.54 yesterday, May 1. The recovery was capped 100 pips above, at 106.54, this European morning and, triggered by the poor manufacturing figures in Germany and EMU, the cross erased all gains obtained in May.

The EUR/JPY is threatening to push even lower as unemployment in the Eurozone deepens to a fresh 15-year high of 10.9% after 11 monthly rises of the indicator, totaling 169000 jobless in the EZ.

“The figures clearly highlight the diverging economic paths of the Eurozone and the US, where unemployment is falling”, wrote ING Bank analyst Martin van Vliet, expecting talks about the long-overdue growth pact for the EZ.

Mataf.net analysts point to resistances at 106.35, 106.85 and 107.60. On the downside, supports might be found at 105.50, 104.80 and 104.60.