14 May 2014
EUR/JPY breaks below 140.00
FXStreet (Bali) - EUR/JPY is breaking through Tuesday's low at the open of Tokyo, with the rate sliding from 140.08 to post a new low of 139.93.
Given the fact that the pair has recently confirmed a downward resolution off a daily triangle pattern, coupled with EUR fundamentals worsening on ECB rate cut woes and the BoJ holding its easing firepower for now, it is probable that the selling pressure may persist.
According to Valeria Bednarik, Chief Analyst at FXStreet: "The hourly chart shows pretty clear the strength of the Japanese currency, as it took only two candles to erase 20 slow hours of advances. The same chart also show 100 SMA acted as dynamic resistance, while momentum maintains the bearish slope, albeit price again held around 139.90. In the 4 hours chart the technical picture is also bearish and sellers may now surge on approaches to the 140.40 price zone."
Given the fact that the pair has recently confirmed a downward resolution off a daily triangle pattern, coupled with EUR fundamentals worsening on ECB rate cut woes and the BoJ holding its easing firepower for now, it is probable that the selling pressure may persist.
According to Valeria Bednarik, Chief Analyst at FXStreet: "The hourly chart shows pretty clear the strength of the Japanese currency, as it took only two candles to erase 20 slow hours of advances. The same chart also show 100 SMA acted as dynamic resistance, while momentum maintains the bearish slope, albeit price again held around 139.90. In the 4 hours chart the technical picture is also bearish and sellers may now surge on approaches to the 140.40 price zone."