31 Jan 2014
EUR/JPY has paused at 139.00 support
FXstreet.com (Moscow) - EUR/JPY is sitting quietly in a narrow range during Asian hours, where the downside is limited by strong support of 139.00 and the upside is contained by 139.40.
Inflation is the order of the day
EUR/JPY is getting ready to finish its sixth week in decline. This is the longest string of continuous weakness since the spring of 2012, so the long-term sentiments in the cross is deeply bearish. On the intraday basis we expect quiet trading with possible profit-taking on short positions due to the end of trading week. Japan published pretty good inflation data that proved that Abe’s plan was good after all. Though the sleepy Asia only yawned at it. Ещонщ fix might bring some excitement, but do not bet your last penny on it. In Europe, the dynamic might be more lively as we have Eurozone CPI data published. Once the market goes into deflation panic once again, EUR will be pressured down across the board. The key levels to watch is 139.00 followed by 138.80 to the downside and 139.40-50 to the upside.
What are today’s key USD/JPY levels?
Today's central pivot point can be found at 102.57, with support below at 101.25, 101.75 and 101.42, with resistance above at 103.07, 103.40, and 103.90. Hourly Moving Averages are mixed, with the 200SMA at 103.31 and the daily 20EMA at 103.50. Hourly RSI is neutral at 54.
Inflation is the order of the day
EUR/JPY is getting ready to finish its sixth week in decline. This is the longest string of continuous weakness since the spring of 2012, so the long-term sentiments in the cross is deeply bearish. On the intraday basis we expect quiet trading with possible profit-taking on short positions due to the end of trading week. Japan published pretty good inflation data that proved that Abe’s plan was good after all. Though the sleepy Asia only yawned at it. Ещонщ fix might bring some excitement, but do not bet your last penny on it. In Europe, the dynamic might be more lively as we have Eurozone CPI data published. Once the market goes into deflation panic once again, EUR will be pressured down across the board. The key levels to watch is 139.00 followed by 138.80 to the downside and 139.40-50 to the upside.
What are today’s key USD/JPY levels?
Today's central pivot point can be found at 102.57, with support below at 101.25, 101.75 and 101.42, with resistance above at 103.07, 103.40, and 103.90. Hourly Moving Averages are mixed, with the 200SMA at 103.31 and the daily 20EMA at 103.50. Hourly RSI is neutral at 54.