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31 Jul 2014
EUR/JPY in bullish territory with conviction
FXStreet (Guatemala) - EUR/JPY is trading at 137.75, up 0.04% on the day, having posted a daily high at 137.83 and low at 137.70.
EUR/JPY has rallied to the top end of the 137 channel after a prolonged spell testing the handle which finally gave way and with conviction, deserving a good deal of analyses
EUR/JPY analyses bullish but consolidated
In regards to todays US events, Val Bednarik, Chief analyst at FXStreet explained that FED saved the day among stocks traders, as US indexed trimmed most of their intraday losses, giving support to the falling yen. “As for the EUR/JPY, the pair extended up to 137.85 before halting the rally, consolidating now above 137.50 immediate support. The hourly chart shows a strong bullish tone coming from indicators that stand in overbought levels, with moving averages converging right below the 137.00 mark. In the 4 hours chart momentum heads strongly north while RSI losses upward potential in overbought levels, suggesting at least a pause in current bullish run. Further gains need to extend above 137.90 to confirm an upward continuation towards critical 138.40 area, not that easy to accomplish considering EUR self weakness. A break below 137.50 on the other hand, will put the pair back on the bearish side, eyeing a retest of 136.90/137.00 price zone”.
EUR/JPY forthcoming risk factor
In relation to the eurozone, Camilla Sutton, CFA, CMT, Chief FX Strategist at Scotiabank explained, data have been mixed, but near term focus shifts to Thursday’s advance CPI for the euro area (exp. 0.5% YoY on headline, unchanged; core exp. unchanged YoY at 0.8%)."
EUR/JPY hourly levels
With spot trading at 137.76, we can see next resistance ahead at 137.83 (Daily High), 138.12 (Daily Classic R1), 138.29 (Weekly Classic R3), 138.40 and 138.85. Support below can be found at 137.72 (Daily Open), 137.52 (Daily 20 SMA), 137.48 (Daily Classic PP) and 136.60.
EUR/JPY has rallied to the top end of the 137 channel after a prolonged spell testing the handle which finally gave way and with conviction, deserving a good deal of analyses
EUR/JPY analyses bullish but consolidated
In regards to todays US events, Val Bednarik, Chief analyst at FXStreet explained that FED saved the day among stocks traders, as US indexed trimmed most of their intraday losses, giving support to the falling yen. “As for the EUR/JPY, the pair extended up to 137.85 before halting the rally, consolidating now above 137.50 immediate support. The hourly chart shows a strong bullish tone coming from indicators that stand in overbought levels, with moving averages converging right below the 137.00 mark. In the 4 hours chart momentum heads strongly north while RSI losses upward potential in overbought levels, suggesting at least a pause in current bullish run. Further gains need to extend above 137.90 to confirm an upward continuation towards critical 138.40 area, not that easy to accomplish considering EUR self weakness. A break below 137.50 on the other hand, will put the pair back on the bearish side, eyeing a retest of 136.90/137.00 price zone”.
EUR/JPY forthcoming risk factor
In relation to the eurozone, Camilla Sutton, CFA, CMT, Chief FX Strategist at Scotiabank explained, data have been mixed, but near term focus shifts to Thursday’s advance CPI for the euro area (exp. 0.5% YoY on headline, unchanged; core exp. unchanged YoY at 0.8%)."
EUR/JPY hourly levels
With spot trading at 137.76, we can see next resistance ahead at 137.83 (Daily High), 138.12 (Daily Classic R1), 138.29 (Weekly Classic R3), 138.40 and 138.85. Support below can be found at 137.72 (Daily Open), 137.52 (Daily 20 SMA), 137.48 (Daily Classic PP) and 136.60.