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13 Jun 2014
EUR/JPY testing 138.00 offers ahead of BoJ
FXStreet (Bali) - EUR/JPY is making a comeback into 138.00 resistance, level where some supply is disallowing further upside for now.
On Thursday, a new low at 137.70 was printed, marking the fifth day in a row with losses. The market now awaits the BoJ monetary policy outcome, although market commentators broadly agree that no significant changes in policy will be announced today, thus Yen crosses should have a limited reaction. The BoJ announcement is tentative, although it tends to be published from 3 GMT onwards.
Technically, Valeria Bednarik, Chief Analyst at FXStreet, notes: "The hourly chart shows indicators recovering some from oversold levels, but moving averages supporting further falls well above current price. In the 4 hours chart indicators diverge higher in negative territory, but price continues to post lower lows. As long as below the 138.00 figure now, the downside is exposed towards 137.20, while only above 138.40 the pair may attempt an upward correction this Friday."
On Thursday, a new low at 137.70 was printed, marking the fifth day in a row with losses. The market now awaits the BoJ monetary policy outcome, although market commentators broadly agree that no significant changes in policy will be announced today, thus Yen crosses should have a limited reaction. The BoJ announcement is tentative, although it tends to be published from 3 GMT onwards.
Technically, Valeria Bednarik, Chief Analyst at FXStreet, notes: "The hourly chart shows indicators recovering some from oversold levels, but moving averages supporting further falls well above current price. In the 4 hours chart indicators diverge higher in negative territory, but price continues to post lower lows. As long as below the 138.00 figure now, the downside is exposed towards 137.20, while only above 138.40 the pair may attempt an upward correction this Friday."