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EUR/JPY bull's tired at converging resistances

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 1, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Guatemala) - EUR/JPY has been a one stop shop for the bulls, making a full recovery of the 2016 downside, exceeding this year's opening price and has recently tracked down the 100 dma at 132.34 today having made a previous day's high of 132.27. Today, the cross has made a high of 131.23, so far.

    EUR/USD has been relatively stable within a sideways range between 1.0710 and 1.0984 so far this year while USD/JPY trading in a much wider range in a volatile fashion depending on the market's appetite for risk. The BoJ's recent action was the nail in the coffin for the Yen while markets have been stabilizing since the opening crash instigated in China.

    EUR/JPY levels

    Technically, EUR/JPY met the six month downtrend line at 132.42 last week, however, Karen Jones, chief analyst at Commerzbank explained that the price could slip back towards the 55 day moving average at 130.67 are expected to be seen while the January high at 132.45 and the downtrend put a lid on EUR/JPY.

    "Should the 132.42/45 area be exceeded, the 200 day moving average at 134.29 and the December peak at 134.58 would be back in the picture. We favour the currency pair failing around the downtrend line, though."


    See here for a long term outlook from Commerzbank
    .
    For more information, read our latest forex news.
     

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