6 Sep 2013
EUR/JPY showing euro losing battle of the weaklings in the short-term
FXstreet.com (Barcelona) - The EUR/JPY got crushed by the ECB’s decision and comments – completely disregarding the Bank of Japan’s decision and commentary.
EUR/JPY reacting to ECB and BOJ bearishly
The Bank of Japan left rates unchanged – not a surprise to anyone. But, the Yen traded lower initially against most currencies – including the euro. However, once the European Central Bank left their interest rates unchanged and kept up with their dovish leanings in their press conference and policy statement, the euro weakness overwhelmed any and all other forces and absolutely crushed the EUR/JPY.
Technical outlook for EUR/JPY
Technicians have been calling for a correction lower in the EUR/JPY for a while, but the ECB’s post-decision commentary may have finally set things in motion on the downside. If their bearish call is correct, a move lower should take the cross from 131.05 currently down to at least 128.85 and possibly down to 128.29. Only a close above 132.13 will alter their bearish outlook.
EUR/JPY reacting to ECB and BOJ bearishly
The Bank of Japan left rates unchanged – not a surprise to anyone. But, the Yen traded lower initially against most currencies – including the euro. However, once the European Central Bank left their interest rates unchanged and kept up with their dovish leanings in their press conference and policy statement, the euro weakness overwhelmed any and all other forces and absolutely crushed the EUR/JPY.
Technical outlook for EUR/JPY
Technicians have been calling for a correction lower in the EUR/JPY for a while, but the ECB’s post-decision commentary may have finally set things in motion on the downside. If their bearish call is correct, a move lower should take the cross from 131.05 currently down to at least 128.85 and possibly down to 128.29. Only a close above 132.13 will alter their bearish outlook.