8 Nov 2013
EUR/JPY drowns at monthly lows
FXstreet.com (Chicago) - EUR/JPY continues trading around monthly lows below the 132 zone after steep fall on ECB’s decision to cut interest rates followed by the impulsive reactions of market participants.
According to Valeria Bednarik, FXstreet.com analyst, “the EUR/JPY was also hit by the rate cut, falling down to 131.78 with it, bouncing back up to 132.70 with positive US data. However, the Japanese currency suddenly recovered strongly mid US session, with little behind the movement except maybe for falling stocks. Anyway, was a quite unexpected and brutal movement with the pair falling as low as 131.20. Currently trading around its 100 DMA at 131.40, first time it touches it since early September, the hourly chart shows indicators losing bearish strength in oversold territory, but far from suggesting and upward correction, while moving averages turn south well above current price. In the 4 hours chart however, the bearish momentum remains strong, supporting more slides ahead: 131.11 stands as immediate support as per being past October monthly low, level to break before a new leg down. A word of warning though: US NFP data has a strong impact in yen crosses, and if the reading overcomes past month one of 148K the pair may find a reason to bounce, eyeing then 132.40/50 price zone.
EUR/JPY Technical Levels
Technically speaking, the pair continues trading around monthly lows despite attempt to erase previous losses. Offered at 131.55, the pair oscillates between the supports aligned at 131.14 (October 7th lows), 130.70 (September 2nd lows) ahead of 129.89 (September 5th lows) and the resistances set at 131.67 (September 30th lows), 132.40 (November 6th lows) followed by 132.79 (September 25th lows). According to the FXstreet.com trend index, the pair is slightly bearish on one-hour timeframe analysis and flows below the EMA20.
According to Valeria Bednarik, FXstreet.com analyst, “the EUR/JPY was also hit by the rate cut, falling down to 131.78 with it, bouncing back up to 132.70 with positive US data. However, the Japanese currency suddenly recovered strongly mid US session, with little behind the movement except maybe for falling stocks. Anyway, was a quite unexpected and brutal movement with the pair falling as low as 131.20. Currently trading around its 100 DMA at 131.40, first time it touches it since early September, the hourly chart shows indicators losing bearish strength in oversold territory, but far from suggesting and upward correction, while moving averages turn south well above current price. In the 4 hours chart however, the bearish momentum remains strong, supporting more slides ahead: 131.11 stands as immediate support as per being past October monthly low, level to break before a new leg down. A word of warning though: US NFP data has a strong impact in yen crosses, and if the reading overcomes past month one of 148K the pair may find a reason to bounce, eyeing then 132.40/50 price zone.
EUR/JPY Technical Levels
Technically speaking, the pair continues trading around monthly lows despite attempt to erase previous losses. Offered at 131.55, the pair oscillates between the supports aligned at 131.14 (October 7th lows), 130.70 (September 2nd lows) ahead of 129.89 (September 5th lows) and the resistances set at 131.67 (September 30th lows), 132.40 (November 6th lows) followed by 132.79 (September 25th lows). According to the FXstreet.com trend index, the pair is slightly bearish on one-hour timeframe analysis and flows below the EMA20.