30 Apr 2015
EUR/JPY rises to 133.50 as German yields soar
FXStreet (Mumbai) - The EUR/JPY pair shot higher to 133.50 as the German Bunds continue to crash, thereby pushing the yields higher for the second consecutive session.
EUR beneficiary of unhedging
The drop in the major European equities and the crash in the German Bunds prices triggered the unwinding of the EUR short positions taken earlier by the overseas investors. Consequently, the shared currency is witnessing a sharp rally across the board.
Meanwhile, the Japanese Yen has come under pressure after the Bank of Japan said it is would not hesitate to adjust the policy if there is no change to price trend.
EUR/JPY Technical Levels
The pair currently trades at 133.38. The immediate support is located at 133.50, above which the pair could extend gains to 134.00. On the flip side, a break below 132.86 could drive the pair lower to 132.54 (100-DMA).
EUR beneficiary of unhedging
The drop in the major European equities and the crash in the German Bunds prices triggered the unwinding of the EUR short positions taken earlier by the overseas investors. Consequently, the shared currency is witnessing a sharp rally across the board.
Meanwhile, the Japanese Yen has come under pressure after the Bank of Japan said it is would not hesitate to adjust the policy if there is no change to price trend.
EUR/JPY Technical Levels
The pair currently trades at 133.38. The immediate support is located at 133.50, above which the pair could extend gains to 134.00. On the flip side, a break below 132.86 could drive the pair lower to 132.54 (100-DMA).