20 Jan 2014
EUR/JPY crossed the Rubicon, but now its fate is in the hands of BoJ
FXstreet.com (Moscow) - EUR/JPY tested the support of 140.30 on Monday morning, but retraced higher as the bearish momentum was not strong enough to break below.
EUR/JPY is vulnerable before the BoJ meeting
EUR/JPY closed the week below the key 142.00 level. That was a late Friday surprise that costed the cross 100 pips. It lost that much on weekly basis. This darkened the technical picture as the deeper correction seems likely now. There are no significant European reports published today, but the cross may be influenced by general euro-sentiment and possible profit-taking following the Friday’s drop. Japanese industrial production numbers may push the cross lower should they come out better than expected, though we believe that the market will refrain from sharp movements before the Bank of Japan meeting later this week. Watch out for 140.30 today. Once it is broken the downside will accelerate to 140.00. The upside is most likely to be limited by 141.00.
What are today’s key EUR/JPY levels?
Today's central pivot point can be found at 141.41, with support below at 104.62, 140.18 and 149.39, with resistance above at 141.85, 142.64, and 143.08. Hourly Moving Averages are bearish, with the 200SMA at 141.93 and the daily 20EMA at 142.13. Hourly RSI is neutral at 31.39.
EUR/JPY is vulnerable before the BoJ meeting
EUR/JPY closed the week below the key 142.00 level. That was a late Friday surprise that costed the cross 100 pips. It lost that much on weekly basis. This darkened the technical picture as the deeper correction seems likely now. There are no significant European reports published today, but the cross may be influenced by general euro-sentiment and possible profit-taking following the Friday’s drop. Japanese industrial production numbers may push the cross lower should they come out better than expected, though we believe that the market will refrain from sharp movements before the Bank of Japan meeting later this week. Watch out for 140.30 today. Once it is broken the downside will accelerate to 140.00. The upside is most likely to be limited by 141.00.
What are today’s key EUR/JPY levels?
Today's central pivot point can be found at 141.41, with support below at 104.62, 140.18 and 149.39, with resistance above at 141.85, 142.64, and 143.08. Hourly Moving Averages are bearish, with the 200SMA at 141.93 and the daily 20EMA at 142.13. Hourly RSI is neutral at 31.39.