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31 Mar 2014
EUR/JPY consolidating around the 142 handle
FXStreet (Guatemala) - Markets are nervous ahead of the ECB this week, but meanwhile, currently, EUR/JPY is trading at 142.06, up 0.47% on the day, having posted a daily high at 142.63 but a low at 141.32.
The Euro got a short lived lift this morning in European markets as retail sales from German impressed at 2.0% and 1.3%, and were far better looking against the expectations of 0.8% and -0.5% year on year and month on month for February and respectively.
As usual, we see the ECB on the first Thursday of next month and Rabobank strategists noted that the most recent inflation numbers in the Eurozone (0.5% headline for March) are, once again, severely testing the ECB’s resolve ‘to sit through’ the recent bout of disinflation. Meanwhile, and first, JPY traders will be awaiting Tankan the first quarter Tankan survey that is released. Strategists at RBS said they anticipate that the survey will show, broadly, that corporate sentiment is improving.
EUR/JPY stabs lower remain muted
Karen Jones, chief analyst at Commerzbank explained that the market is sitting in cloud support currently and said this is available down to 139.65. “We have seen a small stab lower but this has again not been maintained and the intraday Elliott wave counts are suggesting that the downside is limited, we would exercise some caution. The intraday charts are conflicting and a break above 142.25 is needed to imply another run-up to 143.66/79, the 78.6% retracement and the recent high”.
EUR/JPY deeper support
She added, “Stronger support is to be found between the 61.8% Fibonacci retracement at 139.13 and the 138.80 late February low”.
EUR/JPY Levels
The 20 DMA is 141.46, the 50 DMA is 140.47 and the 200 DMA is 135.89. RSI (14) reads 52.45. Supports are ascending from 140.31, 140.64, 141.04, 141.26, 141.74 andc141.97. Spot is 142.10 and next resistance is at 142.65.
The Euro got a short lived lift this morning in European markets as retail sales from German impressed at 2.0% and 1.3%, and were far better looking against the expectations of 0.8% and -0.5% year on year and month on month for February and respectively.
As usual, we see the ECB on the first Thursday of next month and Rabobank strategists noted that the most recent inflation numbers in the Eurozone (0.5% headline for March) are, once again, severely testing the ECB’s resolve ‘to sit through’ the recent bout of disinflation. Meanwhile, and first, JPY traders will be awaiting Tankan the first quarter Tankan survey that is released. Strategists at RBS said they anticipate that the survey will show, broadly, that corporate sentiment is improving.
EUR/JPY stabs lower remain muted
Karen Jones, chief analyst at Commerzbank explained that the market is sitting in cloud support currently and said this is available down to 139.65. “We have seen a small stab lower but this has again not been maintained and the intraday Elliott wave counts are suggesting that the downside is limited, we would exercise some caution. The intraday charts are conflicting and a break above 142.25 is needed to imply another run-up to 143.66/79, the 78.6% retracement and the recent high”.
EUR/JPY deeper support
She added, “Stronger support is to be found between the 61.8% Fibonacci retracement at 139.13 and the 138.80 late February low”.
EUR/JPY Levels
The 20 DMA is 141.46, the 50 DMA is 140.47 and the 200 DMA is 135.89. RSI (14) reads 52.45. Supports are ascending from 140.31, 140.64, 141.04, 141.26, 141.74 andc141.97. Spot is 142.10 and next resistance is at 142.65.