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EUR/JPY off highs, back to 133.00

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 3, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Edinburgh) - After climbing as high as the vicinity of 134.00 the figure, EUR/JPY is now giving away part of that spike and receding towards the 133.00 area.

    EUR/JPY boosted by hawkish ECB

    The cross has been suddenly catapulted to the boundaries of the 134.00 handle following the unexpected hawkish (not as dovish as anticipated) tone by the ECB at today’s meeting.

    In fact, the ECB has lowered its interest rate for deposits to -0.30% and extended its current QE programme to March 2017 or beyond in case of need. He also announced that the purchases of public sector assets will now include local/regional debt. Draghi has candidly defended the performance of QE so far, albeit it reiterated that the scheme remains flexible regarding size, composition and duration.

    EUR/JPY significant levels

    The cross is advancing 1.75% at 133.11 facing the next hurdle at 134.12 (200-day sma) followed by 134.35 (50% Fibo of 139.09-129.61) and then 134.64 (downtrend from 139.09). On the other hand, a breach of 129.72 (low Nov.25) would open the door to 126.85 (low Mar.13) and finally 126.05 (low Apr.14).
    For more information, read our latest forex news.

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