27 Aug 2015
EUR/JPY offered on dead cross MA's and below 136.65
FXStreet (Guatemala) - EUR/JPY is currently trading around the 136 handle with a high of 136.42 and a low of 135.56.
EUR/JPY has been one of the steadier Yen crosses as the euro remains bid playing out its funding roll. The price socialites around the 200 DMA and finds demand along the ascending support line from early July commencing business. Subsequently 136.00 has been holding on downside pressures in jittery markets buying into the Yen. However, despite the rally in US stock markets overnight, and a positive start in Tokyo, the Yen is strong on the back of Kuroda.
EUR/JPY bears enjoy what Kuroda had to say
Kuroda explained earlier that Abenomics has fixed the excessive appreciation of the Yen. The market has taken that as agreen light to buy the Yen. He was adding that the 2% inflation target cane be attained and even inflation expectations need to be increased. "QQE has been having its intended effects…there are no plans for additional easing."
EUR/JPY downside to play for below 136.65
EUR/JPY, looking away from the daily chart where dead-cross MA's are painting a bearish scenario, on the near term chart, the price is stabilising towards a consolidation of the recent downtrend from 138.60. However, Valeria Bednarik notes the risks to the downsides when looking further out, "In the 4-hours chart, the price is well below their moving averages, while the Momentum indicator is bouncing well into negative territory and the RSI hovers around 33, in line with the shorter term view. At this point the price needs to extend beyond 136.65 to be able to reverse its current bearish bias, albeit additional declines below the mentioned daily low, exposes the pair to a steady decline towards the 134.40 price zone."
EUR/JPY has been one of the steadier Yen crosses as the euro remains bid playing out its funding roll. The price socialites around the 200 DMA and finds demand along the ascending support line from early July commencing business. Subsequently 136.00 has been holding on downside pressures in jittery markets buying into the Yen. However, despite the rally in US stock markets overnight, and a positive start in Tokyo, the Yen is strong on the back of Kuroda.
EUR/JPY bears enjoy what Kuroda had to say
Kuroda explained earlier that Abenomics has fixed the excessive appreciation of the Yen. The market has taken that as agreen light to buy the Yen. He was adding that the 2% inflation target cane be attained and even inflation expectations need to be increased. "QQE has been having its intended effects…there are no plans for additional easing."
EUR/JPY downside to play for below 136.65
EUR/JPY, looking away from the daily chart where dead-cross MA's are painting a bearish scenario, on the near term chart, the price is stabilising towards a consolidation of the recent downtrend from 138.60. However, Valeria Bednarik notes the risks to the downsides when looking further out, "In the 4-hours chart, the price is well below their moving averages, while the Momentum indicator is bouncing well into negative territory and the RSI hovers around 33, in line with the shorter term view. At this point the price needs to extend beyond 136.65 to be able to reverse its current bearish bias, albeit additional declines below the mentioned daily low, exposes the pair to a steady decline towards the 134.40 price zone."