6 Sep 2013
EUR/JPY under new pressure; firmer thanks to Draghi
FXstreet.com (Athens)- The EUR/JPY is paving the way for a new sharp sell-off, due to yesterday’s Draghi’s announcement and ahead of weekend profit taking, pre US NFP data.
Will the EUR/JPY sustain 130.00 level amidst Draghi’s dovish stance?
The single currency was heavily wounded yesterday due to a couple of reasons. Most of all, it could be the statement of Mario Draghi that ECB “keeps the rate cut option”, that led to the heavy pressure of the common currency. More precisely, after the European Central Bank deliberations, Governor Mario Draghi remarked that ECB keeps further rate cuts as an option should market yields reach ‘unwarranted’ levels. Meanwhile, euro zone is amidst new fears such as, a fragile Italian coalition government, a new Greek bail-out package and last but not least, Cyprus voting down policy needed for its rescue.
Technical outlook on EUR/JPY
At the time of writing, the pair is trading at 130.73, down 0.47%. The FXstreet.com Trend Index shows the pair to be strongly bearish. Daily pivot point support can be found at 129.67, 128.10, 127.86 and resistance at 131.76, 132.09 and 132.42 respectively.
Will the EUR/JPY sustain 130.00 level amidst Draghi’s dovish stance?
The single currency was heavily wounded yesterday due to a couple of reasons. Most of all, it could be the statement of Mario Draghi that ECB “keeps the rate cut option”, that led to the heavy pressure of the common currency. More precisely, after the European Central Bank deliberations, Governor Mario Draghi remarked that ECB keeps further rate cuts as an option should market yields reach ‘unwarranted’ levels. Meanwhile, euro zone is amidst new fears such as, a fragile Italian coalition government, a new Greek bail-out package and last but not least, Cyprus voting down policy needed for its rescue.
Technical outlook on EUR/JPY
At the time of writing, the pair is trading at 130.73, down 0.47%. The FXstreet.com Trend Index shows the pair to be strongly bearish. Daily pivot point support can be found at 129.67, 128.10, 127.86 and resistance at 131.76, 132.09 and 132.42 respectively.