18 Dec 2014
EUR/JPY downside: An ABC correction ocurring?
FXStreet (Guatemala) - EUR/JPY is trading at 145.94, having posted a daily high at 146.03 and low at 145.92.
EUR/JPY remains pressured and further risk to the downside beyond the first number of hurdles unveils the 2 month support line at 143.79 as Karen Jones, chief analyst at Commerzbank explained. “It is possible that this may be an ‘a-b-c’ correction lower only and we have taken the precaution of partially covering our existing short positions”.
Karen Jones went onto to note that the market recently charted a new high at 149.79 and this was accompanied by a major divergence of the daily RSI. “The market will stay directly offered below 148.45”...
“Above 148.35 would suggest a retest of the 149.79/150.35 resistance. Only above 150.35 will target the 78.6% retracement of the move down from 2008 at 153.35”.
Meanwhile, the euro is weighed on by the divergence between the Fed and ECB. The FOMC essentially confirming the likelihood of rate rises occurring in the second half of 2015 and by contrast, the ECB is about to embark on aggressive monetary easing in the beginning of the year. However, before the year is out we have the Japanese BoJ minuets and Japanese All Industry Activity Index
up later today.
EUR/JPY remains pressured and further risk to the downside beyond the first number of hurdles unveils the 2 month support line at 143.79 as Karen Jones, chief analyst at Commerzbank explained. “It is possible that this may be an ‘a-b-c’ correction lower only and we have taken the precaution of partially covering our existing short positions”.
Karen Jones went onto to note that the market recently charted a new high at 149.79 and this was accompanied by a major divergence of the daily RSI. “The market will stay directly offered below 148.45”...
“Above 148.35 would suggest a retest of the 149.79/150.35 resistance. Only above 150.35 will target the 78.6% retracement of the move down from 2008 at 153.35”.
Meanwhile, the euro is weighed on by the divergence between the Fed and ECB. The FOMC essentially confirming the likelihood of rate rises occurring in the second half of 2015 and by contrast, the ECB is about to embark on aggressive monetary easing in the beginning of the year. However, before the year is out we have the Japanese BoJ minuets and Japanese All Industry Activity Index
up later today.