7 Apr 2014
EUR/JPY sticks to intraday highs
FXStreet (Moscow) - EUR/JPY rebounded from the intraday low of 141.10 and reached current levels of 141.70 despite ECB officials jawboning.
Money doesn’t grow on trees, what a pity!
Nowotny comments pushed the pair to intraday highs of 141.78 as he said that ECB may use some other tools to stimulate economy apart from the policy rate, only to add that there is no urgency in applying them. And even Mersh with more dovish talk failed to derail the single currency from its upside trend. Alas, investors are not satisfied with just dovish rhetoric, they need real actions. They want money to grow on European trees, and won’t demonstrate a strong reaction to anything but actual steps to that effect. As I wrote in my latest blog post "EUR: Many roads down south", it is obvious that the appreciating euro really had its impact on German economy. The export oriented nature of the largest European economy is sensitive to the exchange rate of national currency, as the rise of the euromakes the goods more expensive, and less competitive on the world market. Though German industrial production came out better than expected today. it is not enough to claim full recovery of this worn out European locomotive, It was the only one that pushed the economy of the currency union last year, now it seems that it needs an overhaul. Let’s hope the European policymakers will get the idea sooner rather than later.
What are today’s key EUR/JPY levels?
Today's central pivot point can be found at 141.85, with support below at 141.06, 140.58 and 149.79, with resistance above at 142.24, 143.13, and 143.61. Hourly Moving Averages are bearish, with the 200SMA at 141.86 and the daily 20EMA is neutral at 141.66. Hourly RSI is bullish at 19.
Money doesn’t grow on trees, what a pity!
Nowotny comments pushed the pair to intraday highs of 141.78 as he said that ECB may use some other tools to stimulate economy apart from the policy rate, only to add that there is no urgency in applying them. And even Mersh with more dovish talk failed to derail the single currency from its upside trend. Alas, investors are not satisfied with just dovish rhetoric, they need real actions. They want money to grow on European trees, and won’t demonstrate a strong reaction to anything but actual steps to that effect. As I wrote in my latest blog post "EUR: Many roads down south", it is obvious that the appreciating euro really had its impact on German economy. The export oriented nature of the largest European economy is sensitive to the exchange rate of national currency, as the rise of the euromakes the goods more expensive, and less competitive on the world market. Though German industrial production came out better than expected today. it is not enough to claim full recovery of this worn out European locomotive, It was the only one that pushed the economy of the currency union last year, now it seems that it needs an overhaul. Let’s hope the European policymakers will get the idea sooner rather than later.
What are today’s key EUR/JPY levels?
Today's central pivot point can be found at 141.85, with support below at 141.06, 140.58 and 149.79, with resistance above at 142.24, 143.13, and 143.61. Hourly Moving Averages are bearish, with the 200SMA at 141.86 and the daily 20EMA is neutral at 141.66. Hourly RSI is bullish at 19.