18 Feb 2015
EUR/JPY: An air of caution on the long side
FXStreet (Guatemala) - EUR/JPY is currently trading at 136.05 with a high of 136.16 and a low of 135.99.
While there are no changes expected from the Central Bank, EUR/JPY is set ahead of the BoJ announcement later that will be accompanied with a statement. This statement will be of great interest considering the hype that has built up of late over chatter around BoJ officials concerned about the weakness of the Yen. However, just yesterday we got word from others who came out and said that indeed the weakness of the Yen is good for the domestic economy, and quite the opposite to last weeks news hitting the wires from various media sources.
All has been said before on that subject, but there had been some emphasis on QQE this time around having a negative effect. Technically, the cross is off the lows and support that lies around the 132.40/00 level. below here brings in the 130.00 psychological support and 25th Jan low at 130.14. To the upside, 137.00 would be first target but there is an air of caution around the long side and Karen Jones, chief analyst at Commerzbank said, "Slightly longer term we continue to look for losses to 128.52/34, the 200 month moving average and 38.2% retracement of the move up from 2012."
While there are no changes expected from the Central Bank, EUR/JPY is set ahead of the BoJ announcement later that will be accompanied with a statement. This statement will be of great interest considering the hype that has built up of late over chatter around BoJ officials concerned about the weakness of the Yen. However, just yesterday we got word from others who came out and said that indeed the weakness of the Yen is good for the domestic economy, and quite the opposite to last weeks news hitting the wires from various media sources.
All has been said before on that subject, but there had been some emphasis on QQE this time around having a negative effect. Technically, the cross is off the lows and support that lies around the 132.40/00 level. below here brings in the 130.00 psychological support and 25th Jan low at 130.14. To the upside, 137.00 would be first target but there is an air of caution around the long side and Karen Jones, chief analyst at Commerzbank said, "Slightly longer term we continue to look for losses to 128.52/34, the 200 month moving average and 38.2% retracement of the move up from 2012."