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22 May 2014
EUR/JPY struggling through 138.80
FXStreet (Guatemala) - EUR/JPY is trading at 138.73, having posted a daily high at 138.89 and low at 138.67.
EUR/JPY has achieved key levels through 138.60 but struggles to buck the trend. Analysts at Rabobank remind us that the BoJ didn’t surprise anyone by opting not to boost stimulus given the strong Q1 GDP print and the surge in machine orders in April; “However, with JPY responding by a break through 101 (before reversing) and the equity market now down 13.8% ytd, it remains to be seen if it can stick to that stance into year end”. RBS explained that they see the BoJ QQE policy as sufficient over the medium term to sustain significant further weakness in the JPY. Back across to the European markets ahead, Rabobank explained the markets tonight will focus most on the German and Eurozone manufacturing and services PMIs; “the former are seen slightly lower this month at a still-healthy 54.0 and 54.5, respectively; the latter are therefore also seen down at a less-healthy (but by no means terrible) 53.2 and 53.0”.
EUR/JPY Levels
Current price is 138.74, with resistance ahead at 138.75 (Daily Open), 138.84 (Monthly Low), 138.84 (Weekly Low), 138.89 (Daily High) and 138.92 (Hourly 100 SMA). Next support to the downside can be found at 138.69 (Hourly 20 EMA), 138.67 (Daily Low), 138.61 (Daily Classic PP), 138.26 (Daily Classic S1) and 138.22 (Weekly Classic S1).
EUR/JPY has achieved key levels through 138.60 but struggles to buck the trend. Analysts at Rabobank remind us that the BoJ didn’t surprise anyone by opting not to boost stimulus given the strong Q1 GDP print and the surge in machine orders in April; “However, with JPY responding by a break through 101 (before reversing) and the equity market now down 13.8% ytd, it remains to be seen if it can stick to that stance into year end”. RBS explained that they see the BoJ QQE policy as sufficient over the medium term to sustain significant further weakness in the JPY. Back across to the European markets ahead, Rabobank explained the markets tonight will focus most on the German and Eurozone manufacturing and services PMIs; “the former are seen slightly lower this month at a still-healthy 54.0 and 54.5, respectively; the latter are therefore also seen down at a less-healthy (but by no means terrible) 53.2 and 53.0”.
EUR/JPY Levels
Current price is 138.74, with resistance ahead at 138.75 (Daily Open), 138.84 (Monthly Low), 138.84 (Weekly Low), 138.89 (Daily High) and 138.92 (Hourly 100 SMA). Next support to the downside can be found at 138.69 (Hourly 20 EMA), 138.67 (Daily Low), 138.61 (Daily Classic PP), 138.26 (Daily Classic S1) and 138.22 (Weekly Classic S1).