12 May 2015
EUR/JPY: Looking to kill the broader bearish trend?
FXStreet (Guatemala) - EUR/JPY is currently trading at 134.64 with a high of 135.29 and a low of 133.75.
EUR/JPY remains with a bullish bias and has extended the gains of late and reached new highs on the 135 handle within the rising wedge formation settling above the the 100 SMA. The move came with a weaker greenback on Fed speak and Williams suggesting that rates will not be rising anytime soon. Meanwhile, USD/JPY remains robust and most of the bearish flows in the greenback were set off against a rising euro.
The good news from Europe came with the UK's manufacturing and production industry beating expectations, while the Greeks managed to meet their principal payment of 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.
Technically, there is tough looking resistance ahead around the 136.55/60 mark at 50% Fibo while 136.60 comes as key resistance that may negate the bearish and broader trend formation on the weekly charts. "The market remains bid while above the 131.11 uptrend", as suggested by Karen Jones this week. "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 remains with a bullish bias and has extended the gains of late and reached new highs on the 135 handle within the rising wedge formation settling above the the 100 SMA. The move came with a weaker greenback on Fed speak and Williams suggesting that rates will not be rising anytime soon. Meanwhile, USD/JPY remains robust and most of the bearish flows in the greenback were set off against a rising euro.
The good news from Europe came with the UK's manufacturing and production industry beating expectations, while the Greeks managed to meet their principal payment of 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.
Technically, there is tough looking resistance ahead around the 136.55/60 mark at 50% Fibo while 136.60 comes as key resistance that may negate the bearish and broader trend formation on the weekly charts. "The market remains bid while above the 131.11 uptrend", as suggested by Karen Jones this week. "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."