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EUR/JPY set for the sixth consecutive weekly loss

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 20, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - The EUR/JPY pair is set to extend the losing streak for the sixth consecutive week after Draghi threw EUR under the bus with his dovish comments earlier today.

    Lowest weekly closing since May

    The pair is about to suffer its lowest weekly closing since May. The common currency was on a losing streak for the last four weeks, including the current one mainly on account of increased expectations of more ECB stimulus in December.

    A probability of the pair snapping the five-week losing streak was high, but hopes were dashed after Draghi stressed the need to do more citing low inflation and a slowdown in the recovery. His comments pushed the EUR lower. Meanwhile, a rebound in Japan’s trade balance into surplus reported on Thursday also kept a lid on gains.

    EUR/JPY Technical Levels

    At 131.13, the immediate resistance is located at 131.60 (5-DMA + hourly 100-MA), above which the pair could run into hourly 200-MA at 131.79. On the other hand, a break below 131.00 would expose 130.14 (Jan 2015 low).
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