25 Feb 2015
EUR/JPY making an advance post a beating
FXStreet (Guatemala) - EUR/JPY is currently trading at 134.89 with a high of 134.99 and a low of 134.83.
EUR/JPY bulls are trying not to lose face on the 134 handle, after a steep decline overnight due to a weaker greenback and a better bid Yen on Yellen. Yellen was of the theme around patience still and wasn't able to offer anything in respect of timings of the first rate hike which deflated the US dollar.
Before the market antics around Yellen, we got news that headway is being made in the Eurogroup/Greek deal and the Eurogroup issued a statement that puts the Euro in a less negative light:
"EU institutions consider this list of measures from Greece to be sufficiently comprehensive to be a valid starting point for a successful conclusion of reviewswe therefore are agreed to proceed with the national procedures with a view to reaching the final decision on the extension by up to 4 months of the current Master Financial Assistance Facility Agreement we call on the Greek authorities to further develop and broaden the list of reform measures, based on the current arrangement, in close co-ordination with the institutions in order to allow for a speedy and successful conclusion of the review."
Techncially, Karen Jones, chief anayst at Commerzbank explained that for the past 3 weeks the cross has been correcting higher and appears to have halted well ahead of the 38.2% retracement at 137.65 and well ahead of the 200 day moving average at 139.39. "It is viewed as nothing more than an ‘a-b-c’ correction." Meanwhile, Valeria Bednarik, chief analyst at FXStreet explained that, in the 4 hours chart, the technical picture is biased slightly lower, with the technical indicators heading south around their midlines, lacking strength at the time being as the pair has been restricted in range for two-weeks already.
EUR/JPY bulls are trying not to lose face on the 134 handle, after a steep decline overnight due to a weaker greenback and a better bid Yen on Yellen. Yellen was of the theme around patience still and wasn't able to offer anything in respect of timings of the first rate hike which deflated the US dollar.
Before the market antics around Yellen, we got news that headway is being made in the Eurogroup/Greek deal and the Eurogroup issued a statement that puts the Euro in a less negative light:
"EU institutions consider this list of measures from Greece to be sufficiently comprehensive to be a valid starting point for a successful conclusion of reviewswe therefore are agreed to proceed with the national procedures with a view to reaching the final decision on the extension by up to 4 months of the current Master Financial Assistance Facility Agreement we call on the Greek authorities to further develop and broaden the list of reform measures, based on the current arrangement, in close co-ordination with the institutions in order to allow for a speedy and successful conclusion of the review."
Techncially, Karen Jones, chief anayst at Commerzbank explained that for the past 3 weeks the cross has been correcting higher and appears to have halted well ahead of the 38.2% retracement at 137.65 and well ahead of the 200 day moving average at 139.39. "It is viewed as nothing more than an ‘a-b-c’ correction." Meanwhile, Valeria Bednarik, chief analyst at FXStreet explained that, in the 4 hours chart, the technical picture is biased slightly lower, with the technical indicators heading south around their midlines, lacking strength at the time being as the pair has been restricted in range for two-weeks already.