6 Feb 2014
EUR/JPY is rangebound, waiting for ECB decision
EUR/JPY is moving in a pretty tight range, limited by 137.58 on the upside and 137.09 on the downside.
ECB is in the limelight
EUR/JPY managed to finish Wednesday above the level of 137.00, despite the selling pressure that had pushed it to the intraday low of 136.55. Today the cross is consolidating as the market is waiting to the ECB meeting that is considered to be a key risk event for the single currency today. Bank of Japan Deputy Governor Kikuo Iwata was on wires today. He said that the inflation target of the central bank may be achieved in about three years from the start of the stimulating program (April 2013). Generally, Iwata was pretty dovish and helped the cross to move to intraday highs. But the traders are not eager to make hard and fast decisions as the ECB monetary policy decision looms large. The European central bank may reinforce its dovish stance today to get the deflationary process under control. This will push EUR lower across the board. The first support in the cross comes at 137.00 and followed by 136.55 (yesterday’s low). The resistance is seen at 137.50 and followed by 138.00. Be careful out there as the market might become really volatile.
What are today’s key EUR/JPY levels?
Today's central pivot point can be found at 137.13, with support below at 136.99, 131.11 and 135.67, with resistance above at 137.70, 138.14, and 138.72. Hourly Moving Averages are mixed, with the 200SMA at 138.83 and the daily 20EMA at 139.83. Hourly RSI is neutral at 51.
ECB is in the limelight
EUR/JPY managed to finish Wednesday above the level of 137.00, despite the selling pressure that had pushed it to the intraday low of 136.55. Today the cross is consolidating as the market is waiting to the ECB meeting that is considered to be a key risk event for the single currency today. Bank of Japan Deputy Governor Kikuo Iwata was on wires today. He said that the inflation target of the central bank may be achieved in about three years from the start of the stimulating program (April 2013). Generally, Iwata was pretty dovish and helped the cross to move to intraday highs. But the traders are not eager to make hard and fast decisions as the ECB monetary policy decision looms large. The European central bank may reinforce its dovish stance today to get the deflationary process under control. This will push EUR lower across the board. The first support in the cross comes at 137.00 and followed by 136.55 (yesterday’s low). The resistance is seen at 137.50 and followed by 138.00. Be careful out there as the market might become really volatile.
What are today’s key EUR/JPY levels?
Today's central pivot point can be found at 137.13, with support below at 136.99, 131.11 and 135.67, with resistance above at 137.70, 138.14, and 138.72. Hourly Moving Averages are mixed, with the 200SMA at 138.83 and the daily 20EMA at 139.83. Hourly RSI is neutral at 51.