19 Jan 2015
EUR/JPY off highs, back to 136.00
FXStreet (Edinburgh) - EUR/JPY left session highs around 136.40 and is now heading back to test the key support at 136.00 the figure.
EUR/JPY eyes on BoJ, ECB
It will be a critical week for the single currency, as the likeliness that the ECB could adopt a QE programme and announce it on Thursday has been growing up amongst traders and adding downside pressure on the EUR. On the JPY-side of the equation, the BoJ will hold its meeting on Wednesday, although markets are expecting any major announcements. In addition, BoJ officials stressed that further easing will not be necessary throughout the present year, removing some selling pressure from the yen.
In the view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, “Rallies are expected to terminate on moves into the 137.85/139.55 band, and would use rallies into this band to sell into”.
EUR/JPY levels to consider
The cross is now losing 0.05% at 135.98 with the next support at 135.00 (psychological level) followed by 134.70 (2015 low Jan.16) and finally 134.15 (2014 low Oct.16). On the upside, a break above 136.37 (high Jan.19) would open the door to 137.02 (low Jan.14) and then 138.21 (Tenkan Sen).
EUR/JPY eyes on BoJ, ECB
It will be a critical week for the single currency, as the likeliness that the ECB could adopt a QE programme and announce it on Thursday has been growing up amongst traders and adding downside pressure on the EUR. On the JPY-side of the equation, the BoJ will hold its meeting on Wednesday, although markets are expecting any major announcements. In addition, BoJ officials stressed that further easing will not be necessary throughout the present year, removing some selling pressure from the yen.
In the view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, “Rallies are expected to terminate on moves into the 137.85/139.55 band, and would use rallies into this band to sell into”.
EUR/JPY levels to consider
The cross is now losing 0.05% at 135.98 with the next support at 135.00 (psychological level) followed by 134.70 (2015 low Jan.16) and finally 134.15 (2014 low Oct.16). On the upside, a break above 136.37 (high Jan.19) would open the door to 137.02 (low Jan.14) and then 138.21 (Tenkan Sen).