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5 Oct 2015
EUR/JPY bears taking back control
FXStreet (Guatemala) - EUR/JPY is currently trading at 134.77 with a high of 135.72 and a low of 134.41.
EUR/JPY rallied on to the 135 handle but met some profit taking in line with performances in the European session through EUR/USD and the Yen. The stock markets have been performing strongly after the poor Nonfarm Payrolls result offer a relief to the corporate sector.
The FOMC minutes are this week and should the tone be dovish, one might expect to see a continued bullish tone in equities and a robust USD/JPY and a weaker Yen on the crosses.
EUR/JPY technically neutral / bearish
Technically, 136.50/80 is a strong level of orders and resistance, and the 200 SMA is at 134.49, descending while MACD turns more negative while the cross is trading with a neutral/bearish bias with 132 as key psychological support and 138 being a level that if broken would alleviate the bearish bias.
Nearer term, 133.50 has been a support since May of this year on a number of occasions, and the pair has recently rallied from here, but lacking conviction. A break of this level to the downside would expose 131.80.
EUR/JPY rallied on to the 135 handle but met some profit taking in line with performances in the European session through EUR/USD and the Yen. The stock markets have been performing strongly after the poor Nonfarm Payrolls result offer a relief to the corporate sector.
The FOMC minutes are this week and should the tone be dovish, one might expect to see a continued bullish tone in equities and a robust USD/JPY and a weaker Yen on the crosses.
EUR/JPY technically neutral / bearish
Technically, 136.50/80 is a strong level of orders and resistance, and the 200 SMA is at 134.49, descending while MACD turns more negative while the cross is trading with a neutral/bearish bias with 132 as key psychological support and 138 being a level that if broken would alleviate the bearish bias.
Nearer term, 133.50 has been a support since May of this year on a number of occasions, and the pair has recently rallied from here, but lacking conviction. A break of this level to the downside would expose 131.80.