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EUR/JPY: bearish gap closed, pressured below 1hr 200 SMA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 16, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Guatemala) - EUR/JPY is trading back in the vicinity of last night's opening bearish gap in Asia when risk-off markets got out of the euro on the back of the Paris terror attacks that could have huge negative implications for markets.

    Previous attacks have had a short-term impact, but this is the second round of attacks in Paris in less than a year and due to the scale of them, the long term effects on confidence in the EZ that is already facing deflationary pressures will weigh on the euro and possibly force the easing hand of the ECB before the end of the year.

    EUR/JPY levels

    Technically, the hourly 200 SMA at 132.20 is coming in as hard resistance on the rebound anchored just above the opening gap. 131.20 is a key support to the downside, but 128 would be the key psychological target to erode the April uptrend. The price remains under offer below the 200 DMA at 134.35.
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