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25 Apr 2016
EUR/JPY: bulls riding yen weakness - FXStreet
Valeria Bednarik, chief analyst at FXStreet explained that the Japanese yen edged sharply lower on Friday, on renewed expectations for further BOJ stimulus, also weighed by poor local data, as the Japanese April manufacturing PMI slumped to a new record low of 48.0 from 49.1.
Key Quotes:
"In spite of EUR self weakness, the EUR/JPY pair soared to 125.49, as speculative interest focused on unwinding JPY longs during the US session. The sharp recovery, however, stalled short from a major resistance, the 618% retracement of the 128.21/121.70 decline at 125.70, now the immediate resistance."
"Also in the daily chart, the 100 DMA presents a sharp bearish slope around 126.80, the level to beat to confirm a steeper recovery in term, now supported by the technical indicators, which head sharply higher around their mid-lines after bouncing from oversold readings."
"In the 4 hours chart, the Momentum indicator is aiming to regain its bullish strength within positive territory, while the RSI indicator consolidates around 65, and the price holds around a horizontal 200 SMA. A break through the mentioned Fibonacci resistance is required to confirm a new leg higher this Monday, up to the mentioned 100 DMA."
Key Quotes:
"In spite of EUR self weakness, the EUR/JPY pair soared to 125.49, as speculative interest focused on unwinding JPY longs during the US session. The sharp recovery, however, stalled short from a major resistance, the 618% retracement of the 128.21/121.70 decline at 125.70, now the immediate resistance."
"Also in the daily chart, the 100 DMA presents a sharp bearish slope around 126.80, the level to beat to confirm a steeper recovery in term, now supported by the technical indicators, which head sharply higher around their mid-lines after bouncing from oversold readings."
"In the 4 hours chart, the Momentum indicator is aiming to regain its bullish strength within positive territory, while the RSI indicator consolidates around 65, and the price holds around a horizontal 200 SMA. A break through the mentioned Fibonacci resistance is required to confirm a new leg higher this Monday, up to the mentioned 100 DMA."