27 Jul 2015
EUR/JPY: Recoveries continue above key support
FXStreet (Guatemala) - EUR/JPY is currently trading at 135.92 with a high of 136.04 and a low of 135.74.
EUR/JPY has started to rise back towards 136 after a slide last week that took the cross down through the figure and to lows in the proximity of the mid point of the 135 handle, but some way off from the base of three-month lows.
From the calendar, we await the US data in the main, including the FOMC, but for the EZ we have the CPI's towards the end of the week. Analysts at TD Securities explained, "Flash Eurozone HICP (Thu/Fri 30/31 July): Overall, the recent fall in energy prices looks likely to have been enough to keep most base effects at bay one last month. This should delay slightly the inevitable reflation we should see into year-end. Overall, we see German HICP likely remaining unchanged at 0.1% y/y, though the risk is a slight tick higher to 0.2%. This implies a similar setup for the Eurozone figure on Friday. We expect that to remain unchanged at 0.2% y/y with a slight upside risk. Overall, this may be a slight disappointment to those expecting more immediate evidence of reflation, but in the end it means little for ECB policy." Meanwhile, Athens and the EU leaders/creditos will start talks on the bailout this week also.
EUR/JPY technically neutral/bullish
EUR/JPY's slide has ben supported before key support at 133.20. Karen Jones, chief analyst that given the robust rebound recently from the 133.10/57 support (Fibo and May low), she suspects that the 137.10 200 day ma will come under further attack.
EUR/JPY has started to rise back towards 136 after a slide last week that took the cross down through the figure and to lows in the proximity of the mid point of the 135 handle, but some way off from the base of three-month lows.
From the calendar, we await the US data in the main, including the FOMC, but for the EZ we have the CPI's towards the end of the week. Analysts at TD Securities explained, "Flash Eurozone HICP (Thu/Fri 30/31 July): Overall, the recent fall in energy prices looks likely to have been enough to keep most base effects at bay one last month. This should delay slightly the inevitable reflation we should see into year-end. Overall, we see German HICP likely remaining unchanged at 0.1% y/y, though the risk is a slight tick higher to 0.2%. This implies a similar setup for the Eurozone figure on Friday. We expect that to remain unchanged at 0.2% y/y with a slight upside risk. Overall, this may be a slight disappointment to those expecting more immediate evidence of reflation, but in the end it means little for ECB policy." Meanwhile, Athens and the EU leaders/creditos will start talks on the bailout this week also.
EUR/JPY technically neutral/bullish
EUR/JPY's slide has ben supported before key support at 133.20. Karen Jones, chief analyst that given the robust rebound recently from the 133.10/57 support (Fibo and May low), she suspects that the 137.10 200 day ma will come under further attack.