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25 Feb 2014
EUR/JPY lacks drivers, stuck on 140.80 post Tokyo open
FXStreet (Guatemala) - We are at 140.80 with EUR/JPY on a week which might favour the Euro over the JPY if we remain in a risk on environment.
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." Kit Juckes, SOCIETE GENERALE’s global head of currency strategy said, “George Soros apparently wants to buy European bank stocks, and in FX, a risk-friendly market is not helpful for the dolalr or the yen. We might seeEUR/JPY make a further move towards 145”.
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 55.05. Supports are ascending from 139.55, 139.76, and 139.95. Spot is 140.79 while resistances are 141.29, 141.77, 142.07 and 142.90.
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." Kit Juckes, SOCIETE GENERALE’s global head of currency strategy said, “George Soros apparently wants to buy European bank stocks, and in FX, a risk-friendly market is not helpful for the dolalr or the yen. We might seeEUR/JPY make a further move towards 145”.
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 55.05. Supports are ascending from 139.55, 139.76, and 139.95. Spot is 140.79 while resistances are 141.29, 141.77, 142.07 and 142.90.