EUR/JPY: rally capped at 100 sma

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 15, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    EUR/JPY has struggled to make further ground beyond the 100 sma at 127.86 while spot made a high of 127.96 in recent trade. The pair has been in recovery mode since recent lows of 125.77 after the sell-off from 129.61 and in continuation of the downside drift from 132.22.

    Fundamentally, the yen has been harboring risk-off investors running for cover. However, risk apatite returned yesterday and the cross has been rescued at aforementioned lows. However, the gains were limited on a dovish Draghi today who was explaining again,that the ECB are ready to do their part and “The Governing Council will review and possibly reconsider the monetary policy stance in early March.”

    EUR/JPY near term levels

    For the technicals, Valeria Bednarik, chief analyst at FXStret explained, "The EUR/JPY pair 1 hour chart shows that the 100 SMA contained the advance, with the price a few pips below it, currently at 127.90. In the same chart, the Momentum indicator stands flat around its 100 level, while the RSI indicator turned lower, but remains within positive territory around 57, all of which leaves a limited downward potential in the short term."
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