18 Jul 2014
EUR/JPY stuck in the dirt on risk aversion
FXStreet (Guatemala) - We are in a deep bearish move and while markets are likely to remain in risk off mode at the close of lay this week, that isn’t about to change.
Valeria Bednarik, chief analyst at FXStreet explained earlier, to bring us up to speed, that the Japanese currency rally was fuelled in the US by the terrible news around Malaysian plane downed over the Ukraine in their airspace, sending EUR/JPY below the 137.00 mark where it stands. “US stocks turned south also closing in deep red and erasing Wednesday gains, which also weighs on yen pairs”. She explained that, technically, the hourly chart shows price pressuring the lows and moving averages gaining bearish slope above current price, as indicators stand flat in negative territory. “In the 4 hours chart however, there is a strong bearish momentum that supports a continued slide towards 136.60 immediate support. A break below this last, will be quite significant for the pair, pointing then for a probable continuation towards the 135.00 level over the days to come”.
EUR/JPY hourly levels
Current price is 136.83, with resistance ahead at 136.99 (Daily High). Next support to the downside can be found at 136.71 (Daily Low) and 136.63 (YTD Low).
Valeria Bednarik, chief analyst at FXStreet explained earlier, to bring us up to speed, that the Japanese currency rally was fuelled in the US by the terrible news around Malaysian plane downed over the Ukraine in their airspace, sending EUR/JPY below the 137.00 mark where it stands. “US stocks turned south also closing in deep red and erasing Wednesday gains, which also weighs on yen pairs”. She explained that, technically, the hourly chart shows price pressuring the lows and moving averages gaining bearish slope above current price, as indicators stand flat in negative territory. “In the 4 hours chart however, there is a strong bearish momentum that supports a continued slide towards 136.60 immediate support. A break below this last, will be quite significant for the pair, pointing then for a probable continuation towards the 135.00 level over the days to come”.
EUR/JPY hourly levels
Current price is 136.83, with resistance ahead at 136.99 (Daily High). Next support to the downside can be found at 136.71 (Daily Low) and 136.63 (YTD Low).