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30 May 2014
EUR/JPY bounces off 138.10
FXStreet (Edinburgh) - The single currency is now picking up pace on Friday, lifting the EUR/JPY to the 138.30/35 region after dipping around 138.10.
EUR/JPY supported at 138.00
The cross is extending the rebound from multi-month lows around the 138.00 handle, although it remains well submerged in the red territory for the week. In the data front, Japanese key inflation figures came in higher with the National CPI ex-Fresh Food rising at an annual pace of 3.2%; in the euro area, German retail sales for the month of April contracted 0.9% inter-month, missing forecasts for a 0.4% gain. “It should be noted that we suspect that the pattern developing on the chart is a potential bear flag – this following the break down from a triangle suggests a fast sell off once a close below the 200 day ma has been seen… Our initial downside target the 136.25 2014 low”, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.
EUR/JPY levels to watch
As of writing the pair is down 0.04% at 138.38 with the next support at 137.98 (low May 29) ahead of 136.78 (low Feb.6) and then 136.55 (low Feb.5). On the flip side, a breakout of 138.52 (high May 29) would aim for 138.68 (Tenkan Sen) and finally 139.10 (high May 28).
EUR/JPY supported at 138.00
The cross is extending the rebound from multi-month lows around the 138.00 handle, although it remains well submerged in the red territory for the week. In the data front, Japanese key inflation figures came in higher with the National CPI ex-Fresh Food rising at an annual pace of 3.2%; in the euro area, German retail sales for the month of April contracted 0.9% inter-month, missing forecasts for a 0.4% gain. “It should be noted that we suspect that the pattern developing on the chart is a potential bear flag – this following the break down from a triangle suggests a fast sell off once a close below the 200 day ma has been seen… Our initial downside target the 136.25 2014 low”, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.
EUR/JPY levels to watch
As of writing the pair is down 0.04% at 138.38 with the next support at 137.98 (low May 29) ahead of 136.78 (low Feb.6) and then 136.55 (low Feb.5). On the flip side, a breakout of 138.52 (high May 29) would aim for 138.68 (Tenkan Sen) and finally 139.10 (high May 28).