6 Jun 2014
EUR/JPY remains capped on the upside, 140 remains key
FXStreet (Guatemala) - EUR/JPY is trading at 139.82, down -0.05% on the day, having posted a daily high at 140.00 and low at 139.38.
EUR/JPY has recovered from below the half way mark on the handle but offers are protecting ground much beyond 139.80 on the bid. Karen Jones, chief analyst at Commerzbank noted that the market’s correction higher has so far stalled at 140. “The near term move higher will make little impact on our negative bias while capped by 141.00 and the 2014 downtrend at 141.93. We look for it to struggle above 140”.
EUR/JPY is about ECB and EUR/USD ranges
Jim Reid , analyst at Deutsche Bank A explained that the ECB has bought itself some time and seems to be ready to wait for quite a while, possibly next year, for the next step. In terms of the performance of the euro, and taking into consideration of the implications for the EUR/JPY cross, Strategists at the bank explained that conditions are still set in place for a range-bound EUR/USD over the summer months but are worried near term about a potential squeeze higher, particularly given the currency’s propensity to rise after every ECB meeting over the last 12 months and real rates suggesting fair value closer to 1.38. Meanwhile, analyst at Rabobank said to expect EUR/USD to remain mostly confined in the 1.36 to 1.38 area on a 3 mth view and edge down towards the 1.35 area by the end of the year.
EUR/JPY Levels
Spot is presently trading at 139.83, and next resistance can be seen at 139.90 (Weekly High), (Daily Open), 140.00 (Daily High), 140.02 (Yesterday's High) and 140.12 (Weekly Classic R2). Support below can be found at 139.71 (Hourly 20 EMA), 139.56 (Hourly 100 SMA), 139.55 (Daily 20 SMA), 139.53 (Daily Classic PP) and 139.44 (Weekly Classic R1).
EUR/JPY has recovered from below the half way mark on the handle but offers are protecting ground much beyond 139.80 on the bid. Karen Jones, chief analyst at Commerzbank noted that the market’s correction higher has so far stalled at 140. “The near term move higher will make little impact on our negative bias while capped by 141.00 and the 2014 downtrend at 141.93. We look for it to struggle above 140”.
EUR/JPY is about ECB and EUR/USD ranges
Jim Reid , analyst at Deutsche Bank A explained that the ECB has bought itself some time and seems to be ready to wait for quite a while, possibly next year, for the next step. In terms of the performance of the euro, and taking into consideration of the implications for the EUR/JPY cross, Strategists at the bank explained that conditions are still set in place for a range-bound EUR/USD over the summer months but are worried near term about a potential squeeze higher, particularly given the currency’s propensity to rise after every ECB meeting over the last 12 months and real rates suggesting fair value closer to 1.38. Meanwhile, analyst at Rabobank said to expect EUR/USD to remain mostly confined in the 1.36 to 1.38 area on a 3 mth view and edge down towards the 1.35 area by the end of the year.
EUR/JPY Levels
Spot is presently trading at 139.83, and next resistance can be seen at 139.90 (Weekly High), (Daily Open), 140.00 (Daily High), 140.02 (Yesterday's High) and 140.12 (Weekly Classic R2). Support below can be found at 139.71 (Hourly 20 EMA), 139.56 (Hourly 100 SMA), 139.55 (Daily 20 SMA), 139.53 (Daily Classic PP) and 139.44 (Weekly Classic R1).