EUR/JPY: downside bias, in a battle of the Banks

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 18, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Guatemala) - EUR/JPY is in a tight range trading with a bearish bias, despite Asia closing up and stock markets in general performing well.

    Downside risks have increased in light of Paris attacks - ECB's Praet

    The euro on the other hand is very soft and below the 1.07 handle vs the greenback while we press on towards the close for the year and key December meetings with the FOMC tipped to vote in favour of a rate hike vs the back-drop of a dovish ECB, even more concerned on the back of the Paris attacks. The BoJ is a potential spanner in the works for the bears while Japan entered into a technical recession and markets look for a call to action from the Central Bank in the coming months as well.

    Fed's Fischer: Liftoff decision depends on progress on Fed goals

    EUR/JPY levels

    Technically, the hourly 200 SMA at 132.12 is being left behind and the price continues to press on the mid-point of the 131 handle with 131.20 the key support to the downside. A break of that opens up an avenue towards the 128 psychological target to erode the April uptrend. The price remains under offer below the 200 DMA at 134.35.
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