27 May 2014
EUR/JPY facing headwinds
FXStreet (Guatemala) - EUR/JPY is trading at 139.03, down -0.04% on the day, having posted a daily high at 139.39 and low at 138.82.
EUR/JPY has been on a corrective rally since last week, from the 200 day ma at 138.19. However, Karen Jones, chief analyst at Commerzbank noted that rallies are indicated to terminate ahead of 139.70/140.45 and said while capped by the 55 day ma at 141.00 it will remain directly offered. Meanwhile, and adding to the bearishness, Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman explained that, over the weekend, Draghi discussed the “potential for a negative spiral to take hold between low inflation, falling inflating expectations and credit. However, he further explained, "If the ECB does not ease in a strong fashion, it risks losing some credibility in its communication. It could trigger new appreciation of the euro, which has broken below its 200-day moving average for the first time since last September."
EUR/JPY Levels
Current price is 139.05, with resistance ahead at 139.07 (Hourly 20 EMA), 139.10 (Daily Open), 139.10 (Weekly High), 139.13 (Yesterday's High) and 139.24 (Daily Classic R1). Next support to the downside can be found at 138.99 (Daily Classic PP), 138.97 (Hourly 200 SMA), 138.92 (Hourly 100 SMA), 138.85 (Daily Classic S1) and 138.82 (Daily
EUR/JPY has been on a corrective rally since last week, from the 200 day ma at 138.19. However, Karen Jones, chief analyst at Commerzbank noted that rallies are indicated to terminate ahead of 139.70/140.45 and said while capped by the 55 day ma at 141.00 it will remain directly offered. Meanwhile, and adding to the bearishness, Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman explained that, over the weekend, Draghi discussed the “potential for a negative spiral to take hold between low inflation, falling inflating expectations and credit. However, he further explained, "If the ECB does not ease in a strong fashion, it risks losing some credibility in its communication. It could trigger new appreciation of the euro, which has broken below its 200-day moving average for the first time since last September."
EUR/JPY Levels
Current price is 139.05, with resistance ahead at 139.07 (Hourly 20 EMA), 139.10 (Daily Open), 139.10 (Weekly High), 139.13 (Yesterday's High) and 139.24 (Daily Classic R1). Next support to the downside can be found at 138.99 (Daily Classic PP), 138.97 (Hourly 200 SMA), 138.92 (Hourly 100 SMA), 138.85 (Daily Classic S1) and 138.82 (Daily