EUR/JPY gives back morning gains

FXstreet.com (Barcelona) - EUR/JPY ranged overnight from an opening low at 141.19, jumping higher in early European hours to post a high at 141.92, before retracing its gains to where it is presently trading at 141.49, up 0.25% on the day.

EUR/JPY led by ECB commentary

This morning has been dominated by the ECB, with President Draghi and the following Monthly Report both providing the backdrop for further stimulus measures to combat weak inflation expectations. Kit Juckes, Global Head of Currency Strategy at Societe Generale comments, “Remember all that 'whatever it takes' stuff? Well, now the ECB seems ready to declare victory in the fight against the collapse of the Euro System, and focus on 'not being Japanese'.” Later in the morning the ECB’s Hansen spoke, to highlight that negative deposit rates were still an option for the Central Bank, albeit in adverse cases. Elsewhere EZ Industrial Production missed expectations, while Italian CPI beat forecasts across the board.

What are today’s key EUR/JPY levels?

Today’s central pivot point sits at 141.2717, with resistance above at 141.6483 (R1), 142.0917 (R2) and 142.4683 (R3), and support below at 140.8283 (S1), 140.4517 (S2) and 140.0083 (S3). The hourly 200 SMA sits at 140.25 and is bullish, with the 20 EMA positioned at 138.49 and sloping higher too.

How strong has the move been?

Hourly RSI is at 50, stochastics have moved lower from overbought territory and ADX is at 19. The FXstreet.com proprietary tools, the OB/OS Index and the Trend Index are neutral and strongly bullish respectively.

USD/JPY remains capped by 103.00

The USD/JPY recovery faltered ahead of the 103.00 level during the European session, with the pair pulling back slightly from highs ahead of the next string of US data.
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Flash: EUR/USD at highs, ECB playing with fire? - Societe Generale

Kit Juckes, Global Head of Currency Strategy at Societe Generale notes that the Euro reacted neither to this news or the rise in US yields yesterday.
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