24 Mar 2014
EUR/JPY keeps its head above 141.00 support
FXStreet (Bali) - EUR/JPY is trading with no defined bias, well capped by 140.50 on the downside, while offers keep limiting bounces circa 141.25.
At present, the exchange rate operates just above 141.00, underpinned by a positive open in the Nikkei 225 (+1.06%), as Tokyo players come back to their desks after long weekend. Fundamentally, there has been some comments from PM Abe close adviser Hamada calling for the BoJ to stand ready for further easing should the planned sales tax hike result in significantly lower spending.
EUR/JPY outlook
According to Valeria Bednarik, Chief Analyst at FXStreet: "The EUR/JPY presents a mild bearish short term tone, as the hourly chart shows price below its 100 SMA, acting as dynamic resistance around 141.20, and momentum flat around its midline, lacking strength either side of the board."
"The 4 hours chart shows indicators heading slightly lower below their midlines and price moving back and forth in between 100 and 200 SMAs, both horizontal, overall reflecting the absence of any strong interest around the pair. Key support for this Monday stands around 140.40 static level, as a break below it should lead to a continued slide for the upcoming days", Bednarik adds.
At present, the exchange rate operates just above 141.00, underpinned by a positive open in the Nikkei 225 (+1.06%), as Tokyo players come back to their desks after long weekend. Fundamentally, there has been some comments from PM Abe close adviser Hamada calling for the BoJ to stand ready for further easing should the planned sales tax hike result in significantly lower spending.
EUR/JPY outlook
According to Valeria Bednarik, Chief Analyst at FXStreet: "The EUR/JPY presents a mild bearish short term tone, as the hourly chart shows price below its 100 SMA, acting as dynamic resistance around 141.20, and momentum flat around its midline, lacking strength either side of the board."
"The 4 hours chart shows indicators heading slightly lower below their midlines and price moving back and forth in between 100 and 200 SMAs, both horizontal, overall reflecting the absence of any strong interest around the pair. Key support for this Monday stands around 140.40 static level, as a break below it should lead to a continued slide for the upcoming days", Bednarik adds.