6 Sep 2013
EUR/JPY, subdued to bears? Still 132.00 zone
FXstreet.com (Chicago) - EUR/JPY prints minimal gains but remains far from 132.00 zone ahead of Tokyo’s opening. Market participants digested the regions' central banks decisions to maintain interest rates the same.
Subdued Europe?
Earlier in Europe, the ECB maintained the interest rate at 0.5%. Draghi’s commentaries were rather dovish stating “underlying price pressures in the euro area are expected to remain subdued over the medium term”. To add more dovishness to the precedent commentary he added that “monetary and, in particular, credit dynamics remain subdued”. Ahead of economic data results due in Japan at 5:00GMT, market participants digest BoJ’s decision to also maintain interest rates at 0.1% and the potential acceleration of the tax sales hike in the country. In the old continent, the CAC 40 closed up 0.66% yesterday along the DAX up 0.48%. The Euronext 100 was also up 0.63% following Japan’s first-marked lead with the Nikkei 225 printing 0.08% gains.
EUR/JPY Technical Levels
Price action reveals the consolidation of a potentially short-term reversal after bouncing off 131.31 daily lows. The pair had cracked down from 132.00 zone (38.2% Fibonacci level to lows starting measurement at 129.35 August 30th lows) and bounced 23.6% to remain capped by strong resistance at 131.50 in the last couple of hours. The pair now trades at 131.39 between supports at 131.14 (August 4th highs), 130.73 (July 23rd lows) ahead of 130.37 (August 21st lows) and resistances at 131.52 (September 3rd highs), 131.93 (August 1st highs) followed by 132.33 (August 22nd highs). According to the FXstreet.com trend index, the pair is strongly bearish on one-hour timeframe analysis and is offered below the EMA20.
Subdued Europe?
Earlier in Europe, the ECB maintained the interest rate at 0.5%. Draghi’s commentaries were rather dovish stating “underlying price pressures in the euro area are expected to remain subdued over the medium term”. To add more dovishness to the precedent commentary he added that “monetary and, in particular, credit dynamics remain subdued”. Ahead of economic data results due in Japan at 5:00GMT, market participants digest BoJ’s decision to also maintain interest rates at 0.1% and the potential acceleration of the tax sales hike in the country. In the old continent, the CAC 40 closed up 0.66% yesterday along the DAX up 0.48%. The Euronext 100 was also up 0.63% following Japan’s first-marked lead with the Nikkei 225 printing 0.08% gains.
EUR/JPY Technical Levels
Price action reveals the consolidation of a potentially short-term reversal after bouncing off 131.31 daily lows. The pair had cracked down from 132.00 zone (38.2% Fibonacci level to lows starting measurement at 129.35 August 30th lows) and bounced 23.6% to remain capped by strong resistance at 131.50 in the last couple of hours. The pair now trades at 131.39 between supports at 131.14 (August 4th highs), 130.73 (July 23rd lows) ahead of 130.37 (August 21st lows) and resistances at 131.52 (September 3rd highs), 131.93 (August 1st highs) followed by 132.33 (August 22nd highs). According to the FXstreet.com trend index, the pair is strongly bearish on one-hour timeframe analysis and is offered below the EMA20.