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23 Jan 2015
EUR/JPY recovering from heavy selling
FXStreet (Guatemala) - EUR/JPY is currently trading at 132.70 with a high of 135.06 and a low of 130.90 and down 1.2% on the day.
EUR/JPY has made a minor bounce from the lows and back onto the 132 handle. The recent developments in the ECB's QE programme has weakened the euro considerably across the board. In the background of this event, the BoJ recently met also but they have not changed anything in respect of their own programme of QQE, although they have not ruled out further action down the line.
Jane Foley Senior Currency Strategist explained, that given that Europe is an important export market for many Asian countries, the impact of the weaker EUR is unlikely to be welcomed with open arms there." In respect of further risk to the downside int he cross, Jane Foley suggested further moves lower in EUR/JPY is likely to increase the risk of further action from the BoJ.
Meanwhile, the risk that is most prominent now is Greece and the elections over the weekend. Valeria Bednarik, chief analyst at FXStreet wrote about the the risk in a Greece Grexit.
EUR/JPY has made a minor bounce from the lows and back onto the 132 handle. The recent developments in the ECB's QE programme has weakened the euro considerably across the board. In the background of this event, the BoJ recently met also but they have not changed anything in respect of their own programme of QQE, although they have not ruled out further action down the line.
Jane Foley Senior Currency Strategist explained, that given that Europe is an important export market for many Asian countries, the impact of the weaker EUR is unlikely to be welcomed with open arms there." In respect of further risk to the downside int he cross, Jane Foley suggested further moves lower in EUR/JPY is likely to increase the risk of further action from the BoJ.
Meanwhile, the risk that is most prominent now is Greece and the elections over the weekend. Valeria Bednarik, chief analyst at FXStreet wrote about the the risk in a Greece Grexit.