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27 Feb 2014
EUR/JPY bounce meeting gravity towards 140.00
FXStreet (Guatemala) - EUR/JPY lost the 140 handle in the US session overnight amidst what appeared to be risk aversion, but caught a bounce to meet the drop half way and has since been drifting off to the downside again.
EUR/JPY has been dragged upon by the EUR/USD’s softness today. Strategists at TD Securities explained, “After a week of aimless range-trading suggests a technically driven sell-off, helped perhaps partially by focus on renewed uncertainties in Ukraine”. They went onto say however, “The rather sudden rush to push developments in Ukraine as a driver for EUR weakness looks a little like the market chasing a story instead of the story driving the markets…That is not to say that these regional geo-political tensions will not become a greater influence on the market but the effect on the EUR today looks somewhat overstated. The long and the short of it may simply be that, with EUR/USD nearing the top of the recent trading band, investors are looking for reasons to sell EUR—but not looking too deeply. Finally, Eurozone inflation and credit data may serve to undercut EUR strength a little more in the next few days as markets search for a stronger sense of direction ahead of the ECB policy meeting (march 6th)”.
EUR/JPY Levels
The 20 DMA is 139.37, the 50 DMA is 141.10 200 DMA is 134.55. RSI (14) reads 40.24. Supports are ascending from 139.20, 139.55, 139.76, 139.95,
Spot is 140.02 while resistances are 140.30, 141.04, 141.29,141.77 and 142.90
EUR/JPY has been dragged upon by the EUR/USD’s softness today. Strategists at TD Securities explained, “After a week of aimless range-trading suggests a technically driven sell-off, helped perhaps partially by focus on renewed uncertainties in Ukraine”. They went onto say however, “The rather sudden rush to push developments in Ukraine as a driver for EUR weakness looks a little like the market chasing a story instead of the story driving the markets…That is not to say that these regional geo-political tensions will not become a greater influence on the market but the effect on the EUR today looks somewhat overstated. The long and the short of it may simply be that, with EUR/USD nearing the top of the recent trading band, investors are looking for reasons to sell EUR—but not looking too deeply. Finally, Eurozone inflation and credit data may serve to undercut EUR strength a little more in the next few days as markets search for a stronger sense of direction ahead of the ECB policy meeting (march 6th)”.
EUR/JPY Levels
The 20 DMA is 139.37, the 50 DMA is 141.10 200 DMA is 134.55. RSI (14) reads 40.24. Supports are ascending from 139.20, 139.55, 139.76, 139.95,
Spot is 140.02 while resistances are 140.30, 141.04, 141.29,141.77 and 142.90