11 May 2015
EUR/JPY: Choppy price action, resumes downside
FXStreet (Guatemala) - EUR/JPY is currently trading at 133.87 with a high of 134.24 and a low of 133.48.
EUR/JPY moves with a bullish bias, despite the concerns and cautious tone over Greece to start the week. Tomorrow, there is the deadline for Greece to repay EUR757m to the IMF. However, June is around the corner and this is more of a concern as there is a requirement for the larger EUR1.5b IMF repayment and then the EUR 3b which will be owed to the ECB in July and August.
In any case, the price action in the market is a little skewed, perhaps relating to option expiries in the EUR/USD and Yen that are due 10am NY, large and close to prevailing prices. In any case, EUR/USD has seen a recent spike and has resumed its bearish course and the Yen has been good two way business also. EUR/JPY has followed the path of EUR/USD. From 133.55 to a quick 133.93 and then resuming the downside again to prevailing rate.
Technically, EUR/JPY was as high as 135.99 last week, while the RSI diverged and thus cross dropped away again. Karen Jones, chief analyst at Commerzbank explained that the Elliott wave count on the daily chart is implying a retracement towards 132.70/131.70 ahead of another leg higher. "The market remains bid while above the 131.11 uptrend. We look for gains to the 136.70/137.31 February high and 200 day ma. The 55 week ma lies at 137.55 and we would expect to see the correction higher peter out ahead of here."
EUR/JPY moves with a bullish bias, despite the concerns and cautious tone over Greece to start the week. Tomorrow, there is the deadline for Greece to repay EUR757m to the IMF. However, June is around the corner and this is more of a concern as there is a requirement for the larger EUR1.5b IMF repayment and then the EUR 3b which will be owed to the ECB in July and August.
In any case, the price action in the market is a little skewed, perhaps relating to option expiries in the EUR/USD and Yen that are due 10am NY, large and close to prevailing prices. In any case, EUR/USD has seen a recent spike and has resumed its bearish course and the Yen has been good two way business also. EUR/JPY has followed the path of EUR/USD. From 133.55 to a quick 133.93 and then resuming the downside again to prevailing rate.
Technically, EUR/JPY was as high as 135.99 last week, while the RSI diverged and thus cross dropped away again. Karen Jones, chief analyst at Commerzbank explained that the Elliott wave count on the daily chart is implying a retracement towards 132.70/131.70 ahead of another leg higher. "The market remains bid while above the 131.11 uptrend. We look for gains to the 136.70/137.31 February high and 200 day ma. The 55 week ma lies at 137.55 and we would expect to see the correction higher peter out ahead of here."