6 Jan 2015
EUR/JPY keeps dovish outlook
FXStreet (Bali) - EUR/JPY continues to trade heavy at the Tokyo open, with the exchange rate currently around 142.50 amid a risk adverse environment.
The combination of USD/JPY longs booking profits paired with heavy EUR selling since the get go of this week's opening - weighed by Grexit talk - led the EUR/JPY to evaporate almost 2 cents on Monday, from 144.57 NY close Friday, to 142.68, after finding a temporary bottom at 142.30, retested in the last hour.
Technically, Valeria Bednarik, Chief Analyst at FXStreet, notes: "The 1 hour chart shows that the price consolidates sub 143.00, with indicators still hovering in oversold levels, and moving averages gaining bearish slope well above current price. In the 4 hours chart indicators also remain in oversold levels, but lost the downward momentum seem earlier on the day. Nevertheless, risk favors the downside, with a break below 142.30 exposing the pair to a steady decline towards the 140.40 price zone, a strong midterm static support."
The combination of USD/JPY longs booking profits paired with heavy EUR selling since the get go of this week's opening - weighed by Grexit talk - led the EUR/JPY to evaporate almost 2 cents on Monday, from 144.57 NY close Friday, to 142.68, after finding a temporary bottom at 142.30, retested in the last hour.
Technically, Valeria Bednarik, Chief Analyst at FXStreet, notes: "The 1 hour chart shows that the price consolidates sub 143.00, with indicators still hovering in oversold levels, and moving averages gaining bearish slope well above current price. In the 4 hours chart indicators also remain in oversold levels, but lost the downward momentum seem earlier on the day. Nevertheless, risk favors the downside, with a break below 142.30 exposing the pair to a steady decline towards the 140.40 price zone, a strong midterm static support."