5 Feb 2014
EUR/JPY is on the back foot below 137.00
FXStreet (Moscow) - EUR/JPY lost its hard earned positions above 137.00 and slipped to the current intraday lows of 136.85 as the JPY is growing across the board
EUR/JPY hopes for better macro data
EUR/JPY rebounded yesterday from multi-month lows and managed to finish the day above 137.00 on the back of general JPY retreat. The movement was a pure correction, triggered by a host of technical factors and supported by better than expected EZ retail sails data. Obviously, the cross is still under considerable pressure, increased by dovish comments from Mario Draghi, who is now considering the option to end sterilization of the central bank’s bond purchasing program. This is negative for the single currency as it would add liquidity into the financial system of the currency union. Today Eurozone publishes service sector PMI numbers, they are expected to be as good as manufacturing ones, while the retails sales data is likely to deteriorate. The mixed statistics will hardly be able to provide firm support for the euro, that will continue to be sold on rebounds at least until 138.00 is intact. The closest resistance zone comes at 137.00-20, while support is seen at 136.40.
What are today’s key EUR/JPY levels?
Today's central pivot point can be found at 137.03, with support below at 136.59, 135.79 and 135.35, with resistance above at 137.83, 138.26, and 139.06. Hourly Moving Averages are mixed, with the 200SMA at 139.35 and the daily 20EMA at 140.10. Hourly RSI is neutral at 50.
EUR/JPY hopes for better macro data
EUR/JPY rebounded yesterday from multi-month lows and managed to finish the day above 137.00 on the back of general JPY retreat. The movement was a pure correction, triggered by a host of technical factors and supported by better than expected EZ retail sails data. Obviously, the cross is still under considerable pressure, increased by dovish comments from Mario Draghi, who is now considering the option to end sterilization of the central bank’s bond purchasing program. This is negative for the single currency as it would add liquidity into the financial system of the currency union. Today Eurozone publishes service sector PMI numbers, they are expected to be as good as manufacturing ones, while the retails sales data is likely to deteriorate. The mixed statistics will hardly be able to provide firm support for the euro, that will continue to be sold on rebounds at least until 138.00 is intact. The closest resistance zone comes at 137.00-20, while support is seen at 136.40.
What are today’s key EUR/JPY levels?
Today's central pivot point can be found at 137.03, with support below at 136.59, 135.79 and 135.35, with resistance above at 137.83, 138.26, and 139.06. Hourly Moving Averages are mixed, with the 200SMA at 139.35 and the daily 20EMA at 140.10. Hourly RSI is neutral at 50.