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6 Jun 2014
EUR/JPY шы sandwiched in a tight range
FXStreet (Moscow) - EUR/JPY is sidelined within 25-pip range during quiet Asian hours as traders mull over the ECB decision and await NFP report.
Back in the range
As the ECB did not disappoint the markets and provided enough stimulating measures to live up to heightened expectations, EUR/JPY, just like dropped nearly 100 pips, but the downside proved to be unsustainable as the cross quickly reversed all the losses and even finished the day in the green zone, despite JPY strengthening against USD. This dynamics might be partially explained by «buy the rumor sell the fact» practice, and partially by concerns that the ECB reached its limits in terms of stimulus. On the intraday basis we are waiting for Germany industrial production and trade balance data. These reports are not likely to produce any meaningful effect on EUR movements, but they still deserve our attention. From the technical point of view, keep an eye at 140.00 on the upside and 139.50 on the downside. In this support is broken, 139.30 will come into sight.
What are today’s key EUR/JPY levels?
Today's central pivot point can be found at 139.53, with support below at 139.04, 138.18 and 137.70, with resistance above at 140.39, 140.87, and 141.73. Hourly Moving Averages are mostly bullish with the 200SMA at 139.07 and the daily 20EMA at 139.55. Hourly RSI is bullish at 56.
Back in the range
As the ECB did not disappoint the markets and provided enough stimulating measures to live up to heightened expectations, EUR/JPY, just like dropped nearly 100 pips, but the downside proved to be unsustainable as the cross quickly reversed all the losses and even finished the day in the green zone, despite JPY strengthening against USD. This dynamics might be partially explained by «buy the rumor sell the fact» practice, and partially by concerns that the ECB reached its limits in terms of stimulus. On the intraday basis we are waiting for Germany industrial production and trade balance data. These reports are not likely to produce any meaningful effect on EUR movements, but they still deserve our attention. From the technical point of view, keep an eye at 140.00 on the upside and 139.50 on the downside. In this support is broken, 139.30 will come into sight.
What are today’s key EUR/JPY levels?
Today's central pivot point can be found at 139.53, with support below at 139.04, 138.18 and 137.70, with resistance above at 140.39, 140.87, and 141.73. Hourly Moving Averages are mostly bullish with the 200SMA at 139.07 and the daily 20EMA at 139.55. Hourly RSI is bullish at 56.