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16 Jul 2015
EUR/JPY is tricky territory, should bears take profit?
FXStreet (Guatemala) - EUR/JPY is currently trading at 134.95 with a high of 135.89 and a low of 134.75.
EUR/JPY is anchored to the downside on the back of a weaker euro across the board while the Yen limits the velocity of the trend as it is taken lower vs the greenback on to the 124 handle.
The Greek parliament vote leaves the Greek debacle room to repair itself now, with the ECB deciding to lift the ELA ceiling for Greek banks. Also and at the same time, EU finance ministers agreed on a € 7 billion bridge loan for Greece and this will come from the European Financial Stabilisation Mechanism (EFSM), according to EU Juncker.
In respect to the BoJ earlier on this week, the Yen is free to slide on the back of its policies while analysts at Brown Brothers Harriman explained , "As expected, it shaved this fiscal year's growth to 1.7% from 2.0%. It also pared its inflation forecasts. This year was taken down to 0.7% from 0.8%. Next year's forecast was shaved to 1.9% from 2.0%. The FY2017 forecast was left unchanged at 1.8%. Nowhere does the BOJ project hitting its inflation target. Yet Kuroda gave no hint that more QE is being considered."
Technically, we are in to tricky territory where the 135 handle has been penetrated but without conviction with the large hourly recovery stick that threatens the descending resistance from 136.20 territory. Profits were taken in the 0.0080/70's yet further supply came back in at 135.34 to test the bulls commitments at the handle. Dips lower need to break the lows and convert in to a decisive bearish trend down through 134.40 to open up 133.57/10 targets. If the price holds within the 135 handles territory, risks turn back towards the upside with 135.60 and 135.80 guarding 136.10/40 and 137.00.
EUR/JPY is anchored to the downside on the back of a weaker euro across the board while the Yen limits the velocity of the trend as it is taken lower vs the greenback on to the 124 handle.
The Greek parliament vote leaves the Greek debacle room to repair itself now, with the ECB deciding to lift the ELA ceiling for Greek banks. Also and at the same time, EU finance ministers agreed on a € 7 billion bridge loan for Greece and this will come from the European Financial Stabilisation Mechanism (EFSM), according to EU Juncker.
In respect to the BoJ earlier on this week, the Yen is free to slide on the back of its policies while analysts at Brown Brothers Harriman explained , "As expected, it shaved this fiscal year's growth to 1.7% from 2.0%. It also pared its inflation forecasts. This year was taken down to 0.7% from 0.8%. Next year's forecast was shaved to 1.9% from 2.0%. The FY2017 forecast was left unchanged at 1.8%. Nowhere does the BOJ project hitting its inflation target. Yet Kuroda gave no hint that more QE is being considered."
Technically, we are in to tricky territory where the 135 handle has been penetrated but without conviction with the large hourly recovery stick that threatens the descending resistance from 136.20 territory. Profits were taken in the 0.0080/70's yet further supply came back in at 135.34 to test the bulls commitments at the handle. Dips lower need to break the lows and convert in to a decisive bearish trend down through 134.40 to open up 133.57/10 targets. If the price holds within the 135 handles territory, risks turn back towards the upside with 135.60 and 135.80 guarding 136.10/40 and 137.00.