13 Jan 2015
EUR/JPY drops to 139.50
FXStreet (Edinburgh) - The selling mood prevailing around the euro is helping EUR/JPY to sustain the current breakdown of the psychological handle at 140.00, extending the decline to lows near 139.50.
EUR/JPY broke below the 200-d MA
Absent significant data or events in the Japanese docket, the current developments in the euro region remains the main catalysts for the price action in light of the next ECB meeting on January 22nd. The possibility of the ECB to embark in further stimulus under the figure of ‘quantitative easing’ remains the highest risk for the shared currency so far, leaving intact its bearish stance. Karen Jones, Head of FICC Technical Analysis at Commerzbank, argued “We would allow for a minor rebound into the 141.80/142.80 band, but would use this to sell into. We view that the market has recently topped just ahead of 150.00, and short to medium, the risk is now to the downside. We look for a sell off to the 134.15 October low”.
EUR/JPY levels to consider
At the moment the cross is down 0.48% at 139.40 with the next support at 139.00 (psychological level) ahead of 138.70 (hourly low Oct.31) and then 138.00 (psychological level). On the upside, a breakout of 140.51 (high Jan.13) would open the door to 140.88 (high Jan.12) and finally 141.36 (high Jan.9).
EUR/JPY broke below the 200-d MA
Absent significant data or events in the Japanese docket, the current developments in the euro region remains the main catalysts for the price action in light of the next ECB meeting on January 22nd. The possibility of the ECB to embark in further stimulus under the figure of ‘quantitative easing’ remains the highest risk for the shared currency so far, leaving intact its bearish stance. Karen Jones, Head of FICC Technical Analysis at Commerzbank, argued “We would allow for a minor rebound into the 141.80/142.80 band, but would use this to sell into. We view that the market has recently topped just ahead of 150.00, and short to medium, the risk is now to the downside. We look for a sell off to the 134.15 October low”.
EUR/JPY levels to consider
At the moment the cross is down 0.48% at 139.40 with the next support at 139.00 (psychological level) ahead of 138.70 (hourly low Oct.31) and then 138.00 (psychological level). On the upside, a breakout of 140.51 (high Jan.13) would open the door to 140.88 (high Jan.12) and finally 141.36 (high Jan.9).