EUR/JPY deflates from highs, returns to 123.20

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Apr 14, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The renewed weakness around the single currency remains the exclusive drag for EUR/JPY for the time being, now coming down from overnight tops near 123.40.

    EUR/JPY between EUR-selling and BoJ rumours

    Fresh selling pressure in the single currency seems to be capping occasional bullish attempts in the cross, which remains unable to capitalize the recent wave of JPY weakness backed by rumours of further easing by the BoJ, likely to be announced at next week’s meeting.

    In the meantime, the cross continues to consolidate between 123.00 and 124.00 so far this week, looking to put further distance from April lows in the mid-122.00s.

    Data wise in Japan, February’s Industrial Production figures are due tomorrow, while final EMU’s March CPI is expected later in Euroland.

    EUR/JPY relevant levels

    At the moment the cross is losing 0.10% at 123.16 facing the next support at 122.52 (low Apr.7) followed by 121.98 (2016 low Mar.1) and then 118.74 (2013 low Feb.25). On the other hand, a surpass of 124.38 (38.2% Fibo of 121.98-128.26) would expose 125.51 (20-day sma) and finally 126.25 (55-day sma).
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