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24 Feb 2014
EUR/JPY reversing short term trend
FXStreet (Guatemala) - EUR/JPY is lacking conviction in choppy range bound formations on the charts. The high has been 141.07 and the bottom of the range has been 140.34.
The ">yen strengthened, (EUR/JPY lower) in the Asian trading session over concerns for the outlook for the Chinese economy. The Shanghai Composite equity index sank to a 2 week low by around 1.8% overnight but a strong IFO (business confidence) and uptick in January inflation initially supported EUR in European trade. However, overall, gains evaporated into the NA open, as noted by Camilla Sutton, CFA, CMT, Chief FX Strategist at Scotiabank after the ECB’s Visco reminded markets of the threat of negative interest rates driving EUR back down. “The key for EUR this week will be the release of the February flash CPI estimate on Friday which will flow directly into the ECB’s March 6th decision."
EUR/JPY Levels
The 20 DMA is 139.36, the 50 DMA is 141.15 and the 200 DMA is 134.47. RSI (14) reads 57.21. Supports are ascending from 139.55, 139.76, and 139.95. Spot is 140.76 while resistances are 141.29, 141.77, 142.07 and 142.90.
The ">yen strengthened, (EUR/JPY lower) in the Asian trading session over concerns for the outlook for the Chinese economy. The Shanghai Composite equity index sank to a 2 week low by around 1.8% overnight but a strong IFO (business confidence) and uptick in January inflation initially supported EUR in European trade. However, overall, gains evaporated into the NA open, as noted by Camilla Sutton, CFA, CMT, Chief FX Strategist at Scotiabank after the ECB’s Visco reminded markets of the threat of negative interest rates driving EUR back down. “The key for EUR this week will be the release of the February flash CPI estimate on Friday which will flow directly into the ECB’s March 6th decision."
EUR/JPY Levels
The 20 DMA is 139.36, the 50 DMA is 141.15 and the 200 DMA is 134.47. RSI (14) reads 57.21. Supports are ascending from 139.55, 139.76, and 139.95. Spot is 140.76 while resistances are 141.29, 141.77, 142.07 and 142.90.