10 Feb 2015
EUR/JPY: Riding dollar strength; longer term headed lower 200MMA?
FXStreet (Guatemala) - EUR/JPY is currently trading at 135.01 with a high of 135.29 and a low of 134.04.
EUR/JPY is bid on the short term charts while USD/JPY has staged a one month high at 119.65 taking the cross up to test February highs at current levels. However, on a broader picture, the Yen is likely to benefit in a risk-off environment, and although the greenback is strong given recent wages and jobs data and on the basis that the Fed is speculated to need to do something sooner than later as a result.
The Euro is also subject to the ECB about to launch sovereign QE in less than a month and the situation around Greece is putting a dark cloud over the EZ currently, not to mention on going concerns over problematic France, spain and Italy. For such reasons, the daily chart offers a bearish tone and recently printed 1.5 year lows on Jan 25th at 130.15. Karen Jones, chief analyst at Commerzbank explained, "Slightly longer term we continue to look for losses to 128.52/34, the 200 month moving average."
EUR/JPY is bid on the short term charts while USD/JPY has staged a one month high at 119.65 taking the cross up to test February highs at current levels. However, on a broader picture, the Yen is likely to benefit in a risk-off environment, and although the greenback is strong given recent wages and jobs data and on the basis that the Fed is speculated to need to do something sooner than later as a result.
The Euro is also subject to the ECB about to launch sovereign QE in less than a month and the situation around Greece is putting a dark cloud over the EZ currently, not to mention on going concerns over problematic France, spain and Italy. For such reasons, the daily chart offers a bearish tone and recently printed 1.5 year lows on Jan 25th at 130.15. Karen Jones, chief analyst at Commerzbank explained, "Slightly longer term we continue to look for losses to 128.52/34, the 200 month moving average."