30 Apr 2014
EUR/JPY near day lows after major setback
FXStreet (Bali) - EUR/JPY is currently trading at 141.70 after an abrupt turn around off 142.42 highs after traders sold the Euro strength following a soft German CPI, which adds pressure to the ECB to do something to reverse the disinflationary pattern observed in Europe since last year.
In Asia, the focus will be shifted to the BoJ though, with the central bank widely expected to keep policy unchanged, while Governor Kuroda is also thought to remain on a 'wait-and-see mode' holding off the fire of further easing for the time being as the country's inflation numbers continue to show upward tendencies this year. Besides, Kuroda has said in several occasions that the BoJ wants to first understand the impact that the sales tax hike will have on the economy.
Technically, Valeria Bednarik, Chief Analyst at FXStreet.com, notes: "The hourly chart shows price resting on 100 and 200 SMAs, both converging at current levels, while indicators turn flat near oversold readings, far from suggesting a correction higher. In the 4 hours chart indicators head lower approaching their midlines still in positive territory, while moving averages present a slightly bearish slope standing below current price. The pair will likely remain steady ahead of European data early Wednesday, with recoveries above 142.20 required to deny a bearish continuation."
In Asia, the focus will be shifted to the BoJ though, with the central bank widely expected to keep policy unchanged, while Governor Kuroda is also thought to remain on a 'wait-and-see mode' holding off the fire of further easing for the time being as the country's inflation numbers continue to show upward tendencies this year. Besides, Kuroda has said in several occasions that the BoJ wants to first understand the impact that the sales tax hike will have on the economy.
Technically, Valeria Bednarik, Chief Analyst at FXStreet.com, notes: "The hourly chart shows price resting on 100 and 200 SMAs, both converging at current levels, while indicators turn flat near oversold readings, far from suggesting a correction higher. In the 4 hours chart indicators head lower approaching their midlines still in positive territory, while moving averages present a slightly bearish slope standing below current price. The pair will likely remain steady ahead of European data early Wednesday, with recoveries above 142.20 required to deny a bearish continuation."