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1 Apr 2014
EUR/JPY now side-lined and awaiting impetus
FXStreet (Guatemala) - EUR/JPY is trading at 142.20 currently, up 0.05% on the day, having posted a daily high at 142.28 and low at 142.05. not much happening here but fundamentals are along the way.
EUR/JPY came in European trading marking scores in the low 142.60’s seeing positive German retail sales. Supply was eventually attracted there and we have remained sideways since. Meanwhile, JPY traders will be awaiting the first quarter Tankan survey that is released later on. Strategists at RBS said they anticipate that the survey will show, broadly, that corporate sentiment is improving.
Technically, the pair is trading with a neutral to bearish bias. Daily RSI sits at 52.17, in neutral territory. Looking to momentum indicators, the hourly 200 SMA is currently at 141.27, up from the last close at 141.19 and climbing. Over the past 20 days, the exponential average closing price is 141.18, and ranging.
ECB going to be verbal doves?
Strategists at TD Securities noted that the Headline CPI released today came in below consensus at 0.5% y/y, though they said seasonal factors related to the timing of Easter have likely exacerbated the weakness. “To be sure, inflation holding well below target makes this week's ECB meeting more interesting, as the ECB is after all an inflation targeting institution”. The strategists sais that they narrowly expect unchanged policy rates at the ECB meeting on Thursday. “Still, the ECB will likely use the press-conference to reinforce its dovish bias, including commenting on the EUR”.
EUR/JPY Levels
With spot trading at 142.21, we can see next resistance ahead at 142.23 (Weekly Classic R1), 142.28 (Daily High), 142.63 (Yesterday's High), 142.73 (Daily Classic R2) and 143.06 (Weekly Classic R2). Support below can be found at 142.15 (Weekly High), 142.13 (Daily Open), 142.06 (Daily Classic R1), 142.05 (Daily Low) and 141.95 (Hourly 20 EMA).
EUR/JPY came in European trading marking scores in the low 142.60’s seeing positive German retail sales. Supply was eventually attracted there and we have remained sideways since. Meanwhile, JPY traders will be awaiting the first quarter Tankan survey that is released later on. Strategists at RBS said they anticipate that the survey will show, broadly, that corporate sentiment is improving.
Technically, the pair is trading with a neutral to bearish bias. Daily RSI sits at 52.17, in neutral territory. Looking to momentum indicators, the hourly 200 SMA is currently at 141.27, up from the last close at 141.19 and climbing. Over the past 20 days, the exponential average closing price is 141.18, and ranging.
ECB going to be verbal doves?
Strategists at TD Securities noted that the Headline CPI released today came in below consensus at 0.5% y/y, though they said seasonal factors related to the timing of Easter have likely exacerbated the weakness. “To be sure, inflation holding well below target makes this week's ECB meeting more interesting, as the ECB is after all an inflation targeting institution”. The strategists sais that they narrowly expect unchanged policy rates at the ECB meeting on Thursday. “Still, the ECB will likely use the press-conference to reinforce its dovish bias, including commenting on the EUR”.
EUR/JPY Levels
With spot trading at 142.21, we can see next resistance ahead at 142.23 (Weekly Classic R1), 142.28 (Daily High), 142.63 (Yesterday's High), 142.73 (Daily Classic R2) and 143.06 (Weekly Classic R2). Support below can be found at 142.15 (Weekly High), 142.13 (Daily Open), 142.06 (Daily Classic R1), 142.05 (Daily Low) and 141.95 (Hourly 20 EMA).