1. Hello Guest Do you know binary.com offers exclusive $20 No Deposit Bonus for FX Binary Point visitors? Click here to sign up

EUR/JPY: Gains capped at 23.6% fibo level

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Joined:
    Oct 7, 2015
    Messages:
    27,524
    Likes Received:
    0
    FXStreet (Mumbai) - The 7-day winning streak in the EUR/JPY appears to have run out of steam today near 131.69 (23.6% of Dec 2014 high-April 2015 low).

    EUR under pressure as bond yield drop

    The common currency is under pressure today as the Japan’s negative rate surprise triggered speculation of a more aggressive ECB easing. This is evident from the action in the German bund yields – 10-yr yield dropped to lowest since April 2015 and the 5-yr yield hit a record low of -0.318%.

    However, the Yen too remains under pressure given the nation has negative yields on bonds upto 7-yr maturity. Consequently, the cross is trading largely unchanged on the day around 131.42.

    EUR/JPY Technical Levels

    The immediate resistance is seen at 131.69 (23.6% of Dec 2014 high-April 2015 low), above which the pair could rise to 132.34 (100-DMA). On the other hand, a break below 131.03 (Dec 18 low) would shift risk in favor of a drop to 129.53 (5-DMA).
    For more information, read our latest forex news.
     

Share This Page