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EUR/JPY made fresh 2016 lows this week

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 12, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    EUR/JPY is currently trading at 126.87 with a high of 127.66 and a low of 126.35.

    EUR/JPY lost its footing at the turn of the month from the region of the 100 sma on the hourly sticks at 131.79 and has one up day out of nine trading days since. The Yen has been resilient on safe haven flows within the uncertainty and turmoil in the markets with tightening financial conditions.

    From the EZ, the Eurozone economy GDP grew by 0.3%QoQ in the fourth quarter, Eurostat's flash estimate shows, corresponding to 1.5%YoY."Spain was again the top performer, expanding by 0.8%QoQ. Greece posted another disappointing -0.6%QoQ, showing that the economy still hasn't recovered from the Grexit panic earlier in the year.

    Italy disappointed as well, eking out a meagre 0.1%QoQ, suggesting that what little momentum there was, is already fizzling out again. Finland entered a technical recession, recording a second quarter with (barely) negative growth of -0.1% QoQ. But overall, the Eurozone recovery continued at its modest cruising speed in Q4," explained Teunis Brosens, analyst at ING Bank.

    EUR/JPY levels

    Technically, Karen Jones, chief analyst at Commerzbank explained that EUR/JPY sold-off to the 126.17 recent low. "This has been a spike lower and we look for this to hold the initial test. The intraday Elliott wave count is suggesting that the market will struggle on moves to 128.65" Meanwhile,the price is trading below the 20 dma at 129.16 and a bearish bias remains below here making fresh lows for 2016 of late.
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