30 Jan 2014
EUR/JPY rebounds at 139.00 but suffers 100-pip loss
FXstreet.com (Córdoba) - After the FOMC announcement the EUR/JPY dropped to 139.03, reaching levels not seen since early December but rebounded and rose back above 139.50.
The pair finished Wednesday hovering around 139.55, with a decline of almost a hundred pips. During the European session the Yen strengthened across the board amid risk aversion. At that time the EUR/JPY dropped sharply, erasing two days of gains.
Bearish outlook for the EUR/JPY
Valeria Bednarik, Chief Analyst at FXStreet notes that despite rebounding from 139.00 the EUR/JPY still maintains a negative short term tone. “The pair has managed to bounce from the 139.00 level past week, establishing for now a double floor in the area, but that’s not a guarantee of upcoming strength: if below it, expect the pair to extend its fall to 138.20 in the short term”.
The pair finished Wednesday hovering around 139.55, with a decline of almost a hundred pips. During the European session the Yen strengthened across the board amid risk aversion. At that time the EUR/JPY dropped sharply, erasing two days of gains.
Bearish outlook for the EUR/JPY
Valeria Bednarik, Chief Analyst at FXStreet notes that despite rebounding from 139.00 the EUR/JPY still maintains a negative short term tone. “The pair has managed to bounce from the 139.00 level past week, establishing for now a double floor in the area, but that’s not a guarantee of upcoming strength: if below it, expect the pair to extend its fall to 138.20 in the short term”.