EUR/JPY falling hard to the 200 DMA on dovish Draghi

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 22, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Guatemala) - EUR/JPY dropped heavily and continues to do so on a dovish press conference from the ECB's governor Draghi.

    He is concerned mostly about China and emerging markets while he doesn't have a full visibility on the economic impact, he said a degree of accommodation will need to be re-examined at the December meeting.

    We had the interest rate decision with the ECB staying on hold as widely expected. The main refi rate unchanged at 0.05%, also the deposit rate unchanged -0.20% and the marginal lending rate unchanged 0.30%.

    Draghi on inflation

    EUR/JPY levels

    Technically, we are now below the 134.27 6 month uptrend and the 200 DMA that is at 134.51. Next stop, 132.80 and then the 127.59 the 2013-2015 support line over the medium term to the downside.
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