2 Dec 2014
EUR/JPY sidelined in positive territory ahead of Tokyo open
FXStreet (Guatemala) - EUR/JPY is trading at 147.52, down -0.03% on the day, having posted a daily high at 147.69 and low at 147.50.
EUR/JPY has settled into a sideways play contained between 147.20 ad 147.80 in the main with a couple of shudders either side of the range that were quickly met with supply / demand respectively while the Yen has gathered pace in general on the basis that the BoJ may face hurdles ahead in respect of its requirement for continued easing measures.
Moody downgraded the countries credit rating ahead of the snap elections, making it a less attractive spot to park investments and could effetely put the the central banks programme of buying trillions of yens worth of JGB’s in jeopardy just as Abe is trying to stoke inflation and growth in the economy.
There is uncertainty over Japans ability to cut its fiscal deficit, and Abe's intentions of reform, in delaying the sales tax until late next year, were described as essentially like putting one foot on the brake and another on the accelerator as Thomas Byrne, senior vice president of the sovereign risk group at Moody explained.
Meanwhile, for the EUR/JPY cross, as highlighted by Valeria Bednarik, chief analyst at FXStreet, “In the 4 hours chart indicators stand in positive territory albeit lacking clear directional strength, while price continues to develop well above moving averages, limiting the downside at the time being”.
EUR/JPY has settled into a sideways play contained between 147.20 ad 147.80 in the main with a couple of shudders either side of the range that were quickly met with supply / demand respectively while the Yen has gathered pace in general on the basis that the BoJ may face hurdles ahead in respect of its requirement for continued easing measures.
Moody downgraded the countries credit rating ahead of the snap elections, making it a less attractive spot to park investments and could effetely put the the central banks programme of buying trillions of yens worth of JGB’s in jeopardy just as Abe is trying to stoke inflation and growth in the economy.
There is uncertainty over Japans ability to cut its fiscal deficit, and Abe's intentions of reform, in delaying the sales tax until late next year, were described as essentially like putting one foot on the brake and another on the accelerator as Thomas Byrne, senior vice president of the sovereign risk group at Moody explained.
Meanwhile, for the EUR/JPY cross, as highlighted by Valeria Bednarik, chief analyst at FXStreet, “In the 4 hours chart indicators stand in positive territory albeit lacking clear directional strength, while price continues to develop well above moving averages, limiting the downside at the time being”.