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15 Jan 2015
EUR/JPY recovers from lows
FXStreet (Edinburgh) - After dropping to the area of 135.70 post-SNB decision, EUR/JPY is now back above 137.00 the figure although keeping the trade in session lows.
EUR/JPY hurt by EUR weakness
The offered tone is not giving up on the European currency, pushing the cross lower and offsetting the current JPY weakness at the same time. Recall that BoJ’s Kuroda emphasized this morning in Tokyo that the current monetary easing could be extended in time, allowing the yen to depreciate further. However, the SNB decision to remove the cap of 1.20 CHF per euro today quickly sent the cross to 135.70, intensifying the selling tone. In the opinion of Karen Jones, Head of FICC Technical Analyst at Commerzbank, “Rallies are expected to terminate on moves into the 140.10/141.50 band, and would use this to sell into. We view that the market has recently topped just ahead of 150.00, and short to medium, the risk is now to the downside”.
EUR/JPY relevant levels
At the moment the cross is retreating 0.81% at 137.13 with the next support at 137.02 (low Jan.15) ahead of 136.89 (low Oct.28 2014) and then 136.82 (weekly cloud base). On the upside, a break above 138.78 (high Jan.15) would expose 138.88 (high Jan.14) and finally 139.00 (psychological level).
EUR/JPY hurt by EUR weakness
The offered tone is not giving up on the European currency, pushing the cross lower and offsetting the current JPY weakness at the same time. Recall that BoJ’s Kuroda emphasized this morning in Tokyo that the current monetary easing could be extended in time, allowing the yen to depreciate further. However, the SNB decision to remove the cap of 1.20 CHF per euro today quickly sent the cross to 135.70, intensifying the selling tone. In the opinion of Karen Jones, Head of FICC Technical Analyst at Commerzbank, “Rallies are expected to terminate on moves into the 140.10/141.50 band, and would use this to sell into. We view that the market has recently topped just ahead of 150.00, and short to medium, the risk is now to the downside”.
EUR/JPY relevant levels
At the moment the cross is retreating 0.81% at 137.13 with the next support at 137.02 (low Jan.15) ahead of 136.89 (low Oct.28 2014) and then 136.82 (weekly cloud base). On the upside, a break above 138.78 (high Jan.15) would expose 138.88 (high Jan.14) and finally 139.00 (psychological level).