EUR/JPY slides further below 130.00

FXStreet (Córdoba) - The EUR/JPY pair lost more than 50 pips during the last hour and reached a 6-day low at 129.41. The euro weakened across the board reaching fresh lows.

EUR/JPY sharp reversal

On Monday the EUR/JPY climbed above 131.00 but failed to hold and started a reversal. Since then it has fallen 200 pips and is now moving toward the 129.30; below the next potential support levels might lie at 129.00, 128.60 and then April lows at 128.35/40.

The pair holds a bearish tone in the short term and is back below the daily 20-SMA, falling for the third day in a row, having on Wednesday the worst performance since the beginning of the month.

Apr 8, 2015

Specs less inclined to hold JPY shorts as likelihood of further BoJ easing remains low – RBS

The Global FX Strategy Team at RBS explains that the recent positioning data justifies that investors are less inclined to hold short positions on the JPY as BoJ is not expected to ease into Q4’15, which will only increase deflationary risks.

EM FX outlook: Renewed USD strength might affect countries with weak fundamentals - BBH

Renewed USD strength will lead to spillover effects in the EM, and hence the Brown Brothers Harriman Team uses a FX model in assessing FX risk across countries in EM and highlights the best (1-rated) and worst (5-rated) EM FX currencies according to fundamentals for Q2 2015.