8 Jan 2016
EUR/JPY: bearish bias below 130.93
FXStreet (Guatemala) - EUR/JPY is resuming the downside after a minor recovery from below the 127 handle yesterday to score 129.10 the high. The yen remains underpinned on safe haven flows and lower stocks with the S&P printing fresh lows at the end of this week.
The bulk of the upside and recovery came in a stronger performance in the single currency vs the greenback in a recovery from below 1.0720 to break onto 1.0900. However, that was a short-lived accomplishment as supply came in and capped EUR/USD and the downside was underpinned by today's strong nonfarm payrolls headliner, exposing stocks and a stronger yen.
EUR/JPY levels
Karen Jones, chief analyst at Commerzbank explained that near term rallies are indicated to struggle 129.60/130.30 and while sub 130.93 (minor resistance line) should remain under pressure. "The market has recently eroded major support - namely the 2013-2016 support line and the 55 week moving average at 128.11, but has a 2013-2016 support line at 126.52 it is bouncing from."
The bulk of the upside and recovery came in a stronger performance in the single currency vs the greenback in a recovery from below 1.0720 to break onto 1.0900. However, that was a short-lived accomplishment as supply came in and capped EUR/USD and the downside was underpinned by today's strong nonfarm payrolls headliner, exposing stocks and a stronger yen.
EUR/JPY levels
Karen Jones, chief analyst at Commerzbank explained that near term rallies are indicated to struggle 129.60/130.30 and while sub 130.93 (minor resistance line) should remain under pressure. "The market has recently eroded major support - namely the 2013-2016 support line and the 55 week moving average at 128.11, but has a 2013-2016 support line at 126.52 it is bouncing from."