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23 Jan 2015
EUR/JPY bulls defend key lows and support
FXStreet (Guatemala) - EUR/JPY is currently trading at 134.68 with a high of 135.06 and a low of 134.40.
EUR/JPY bears have again been rejected by the demand at 134.40, denying the move from upon the 135 handle. The pair has dropped circa 260 pips since the euro was dumped on the back of he ECB press conference where Draghi announced, as a last resolve, the EUR60B programme of sovereign QE to stave of deflationary pressures that are mounting. The markets were not surprised by the incentive but more the amount which is 10B per month more than anticipated.
Besides fundamentals, technically, the charts are bias to the downside, but the October 2014 low at 134.12 is an area that if challenged with force and broken, would open up 130.00 as a realistic and achievable target, through Nov 2013 lows.
EUR/JPY bears have again been rejected by the demand at 134.40, denying the move from upon the 135 handle. The pair has dropped circa 260 pips since the euro was dumped on the back of he ECB press conference where Draghi announced, as a last resolve, the EUR60B programme of sovereign QE to stave of deflationary pressures that are mounting. The markets were not surprised by the incentive but more the amount which is 10B per month more than anticipated.
Besides fundamentals, technically, the charts are bias to the downside, but the October 2014 low at 134.12 is an area that if challenged with force and broken, would open up 130.00 as a realistic and achievable target, through Nov 2013 lows.