16 Jan 2015
EUR/JPY testing lower levels on SNB aftermath
FXStreet (Guatemala) - EUR/JPY is currently trading at 135.19 with a high of 135.98 and a low of 134.70 and 0.04% up on the day.
EUR/JPY is down on the basis of the SNB decision to discontinue supporting the euro in order to prevent its own currency from strengthening. Instead of maintaining the floor of EUR/CHF at 1.2000, the bank has allowed the currency to trade freely without restrictions in anticipation of a much weaker Euro ahead. This has allowed the Yen to benefit on the turmoil in markets with equities futures down and investors looking for a temporary safe haven. Directly, the Euro is of course much lower, at its lowest levels in ten years making a recent low of 1.1460 to the dollar, given it has just lost its biggest buyer, the SNB.
Technically, the cross is pressured towards the 134 handle and on further advances through the decimals to, 134.15, bears will be looking for targets around the 133.50/23.6% retracement of the move up from 2012, according to Karen Jones, chief analyst at Commerzbank. "Longer term failure here will introduce scope to 126.00/the 38.2% retracement."
EUR/JPY is down on the basis of the SNB decision to discontinue supporting the euro in order to prevent its own currency from strengthening. Instead of maintaining the floor of EUR/CHF at 1.2000, the bank has allowed the currency to trade freely without restrictions in anticipation of a much weaker Euro ahead. This has allowed the Yen to benefit on the turmoil in markets with equities futures down and investors looking for a temporary safe haven. Directly, the Euro is of course much lower, at its lowest levels in ten years making a recent low of 1.1460 to the dollar, given it has just lost its biggest buyer, the SNB.
Technically, the cross is pressured towards the 134 handle and on further advances through the decimals to, 134.15, bears will be looking for targets around the 133.50/23.6% retracement of the move up from 2012, according to Karen Jones, chief analyst at Commerzbank. "Longer term failure here will introduce scope to 126.00/the 38.2% retracement."