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22 Apr 2015
EUR/JPY bears remain in charge; relief rally runs in to supply
FXStreet (Guatemala) - EUR/JPY is currently trading at 128.60 with a high of 128.97 and a low of 128.17.
EUR/JPY is trading with a bearish bias and heavy post the run up from the the 128.20 supporting level having achieved a decent 50 pips in the US and moving in to congestion and consolidating the rally. USD/JPY has seen similar price action to the upside on the 119 handle while the euro has been a chop in US trade between less than half a cent in a range of 1.0712/49.
EUR/JPY bulls fail to offer conviction with supply taking over ahead of critical levels, of say, the 20 DMA at 128.88 ahead of 129.31 (R1). Instead, 131.80 plays as a celling containing the cross to the downside and the pair is clearly a sell on the longer term time frames due to the fundamentals in the EZ. The role that the Yen plays as a risk off bet and regardless of whether markets are rallying, the cross no longer serves as clear bid, as Omkar Godbole, Editor and Analyst at FXStreet wrote in an insightful article, EUR/JPY: No longer a barometer of risk-on rallies, a long-term sell.
Karen Jones, chief analyst at Commerzbank suggests that a slide below 126.75 will re-target the 126.08 recent low and the 125.89 support line.
EUR/JPY is trading with a bearish bias and heavy post the run up from the the 128.20 supporting level having achieved a decent 50 pips in the US and moving in to congestion and consolidating the rally. USD/JPY has seen similar price action to the upside on the 119 handle while the euro has been a chop in US trade between less than half a cent in a range of 1.0712/49.
EUR/JPY bulls fail to offer conviction with supply taking over ahead of critical levels, of say, the 20 DMA at 128.88 ahead of 129.31 (R1). Instead, 131.80 plays as a celling containing the cross to the downside and the pair is clearly a sell on the longer term time frames due to the fundamentals in the EZ. The role that the Yen plays as a risk off bet and regardless of whether markets are rallying, the cross no longer serves as clear bid, as Omkar Godbole, Editor and Analyst at FXStreet wrote in an insightful article, EUR/JPY: No longer a barometer of risk-on rallies, a long-term sell.
Karen Jones, chief analyst at Commerzbank suggests that a slide below 126.75 will re-target the 126.08 recent low and the 125.89 support line.