EUR/JPY dips below 130.00 in Asia

• EUR/JPY prints session low below 130.00, currently trades around 76.4 percent Fib retracement.
• Eyes Eurozone industrial production and trade balance data release.

EUR/JPY hit a session low of 129.94 and was last seen flirting with 130.02 - 76.4 percent Fibonacci retracement of the rally from March 23 low to April 24 high.

The currency pair has shed close to 326 pips since April 26 as the EUR/USD dropped below 1.20 on widening interest rate differential. Meanwhile, the Yen has been relatively resilient, which explains the slide in the EUR/JPY.

At 33.00, the 14-day relative strength index shows room for the further drop, possibly towards 128.94 (March 24 low). Further losses are to be taken with a pinch of salt as the RSI would show oversold conditions then.

Further, the 4-hour RSI has already hit the oversold territory, thus a corrective rally could be seen, if the Eurozone industrial production (due at 06:00 GMT) betters estimate of 0.8 percent rise month-on-month.

EUR/JPY Technical Levels

A break below 129.89 (Friday's low) would open up downside towards 129.60 (March 19 low) and possibly to129.35 (March 5 low). On the higher side, resistance is lined up at 130.54 (descending 5-day MA), 131.34 (50-day MA), 131.41 (10-day MA).