24 Feb 2015
EUR/JPY: Punished to test support on 135 handle
FXStreet (Guatemala) - EUR/JPY is currently trading at 135.10 with a high of 135.66 and a low of 134.60.
EUR/JPY has spiked lower to test the support of the handle here on a strong Yen and remains in negative territory in a broader theme, as chief analyst at Commerzbank, Karen Jones, suggested, "The short term correction higher looks complete." We have Yellen speaking currently, and markets jumping to conclusions on headlines around forward guidance, but that has settled down now and EUR/USD remains on 1.13 handle again after a brief break lower to 1.1288.
Earlier, the Eurogroup issued a statement that puts the euro in a less negative light: "EU institutions consider this list of measures from Greece to be sufficiently comprehensive to be a valid starting point for a successful conclusion of reviewswe therefore are agreed to proceed with the national procedures with a view to reaching the final decision on the extension by up to 4 months of the current Master Financial Assistance Facility Agreement we call on the Greek authorities to further develop and broaden the list of reform measures, based on the current arrangement, in close co-ordination with the institutions in order to allow for a speedy and successful conclusion of the review."
Techncially, Jones at Commerzbank explained that for the past 3 weeks the cross has been correcting higher and appears to have halted well ahead of the 38.2% retracement at 137.65 and well ahead of the 200 day moving average at 139.39. "It is viewed as nothing more than an ‘a-b-c’ correction."
EUR/JPY has spiked lower to test the support of the handle here on a strong Yen and remains in negative territory in a broader theme, as chief analyst at Commerzbank, Karen Jones, suggested, "The short term correction higher looks complete." We have Yellen speaking currently, and markets jumping to conclusions on headlines around forward guidance, but that has settled down now and EUR/USD remains on 1.13 handle again after a brief break lower to 1.1288.
Earlier, the Eurogroup issued a statement that puts the euro in a less negative light: "EU institutions consider this list of measures from Greece to be sufficiently comprehensive to be a valid starting point for a successful conclusion of reviewswe therefore are agreed to proceed with the national procedures with a view to reaching the final decision on the extension by up to 4 months of the current Master Financial Assistance Facility Agreement we call on the Greek authorities to further develop and broaden the list of reform measures, based on the current arrangement, in close co-ordination with the institutions in order to allow for a speedy and successful conclusion of the review."
Techncially, Jones at Commerzbank explained that for the past 3 weeks the cross has been correcting higher and appears to have halted well ahead of the 38.2% retracement at 137.65 and well ahead of the 200 day moving average at 139.39. "It is viewed as nothing more than an ‘a-b-c’ correction."