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12 Jun 2013
EUR/JPY consolidating losses around 128.00
FXstreet.com (Barcelona) - After trading as high as 131.28 early in the session, the EUR/JPY experienced fierce selling later in the day and closed 303 pips lower at 127.81
EUR/JPY selling pressure revealed after BoJ Meeting
David Song, Currency Analyst at Daily FX noted the Yen strength was quick to be seen across all pairs as soon as market participants noted the Bank of Japan made no adjustments to current policy. “Indeed, the Bank of Japan interest rate decision spurred the sharp rebound in the Yen as the central bank refrained from expanding its non-standard measures while retaining the current terms of its bank-lending program,” Song noted. In discussing his longer term outlook, Song went on to note that price action in the Yen may remain whippy as market participants continue to forecast further Bank of Japan monetary policy decisions.
EUR/JPY technical picture continues to deteriorate
The current technical set up on the EUR/JPY daily chart remains slightly bearish. Short term moving averages continue to break lower which is often a sign the longer term trend followers are losing momentum. Furthermore, the RSI (14) is sitting righ at the 40 level which will is the bottom end of the bullish zone between 40 and 80. Should this level break in coming session, accelerated pressure to the downside may start to show up. Initial support sits at 127.08 (previous session low), while first resistance is 128.74 (supply candle on 1 hour chart)
EUR/JPY selling pressure revealed after BoJ Meeting
David Song, Currency Analyst at Daily FX noted the Yen strength was quick to be seen across all pairs as soon as market participants noted the Bank of Japan made no adjustments to current policy. “Indeed, the Bank of Japan interest rate decision spurred the sharp rebound in the Yen as the central bank refrained from expanding its non-standard measures while retaining the current terms of its bank-lending program,” Song noted. In discussing his longer term outlook, Song went on to note that price action in the Yen may remain whippy as market participants continue to forecast further Bank of Japan monetary policy decisions.
EUR/JPY technical picture continues to deteriorate
The current technical set up on the EUR/JPY daily chart remains slightly bearish. Short term moving averages continue to break lower which is often a sign the longer term trend followers are losing momentum. Furthermore, the RSI (14) is sitting righ at the 40 level which will is the bottom end of the bullish zone between 40 and 80. Should this level break in coming session, accelerated pressure to the downside may start to show up. Initial support sits at 127.08 (previous session low), while first resistance is 128.74 (supply candle on 1 hour chart)