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15 Jan 2015
EUR/JPY making a base post SNB cut
FXStreet (Guatemala) - EUR/JPY is currently trading at 135.86 with a high of 138.82 and a low of 135.40 and down 1.67% on the day.
In over a 300 pip move to the downside, the EUR/JPY is starting to stablise at the 136 level. The move comes as the SNB scraps its cap on the CHF and allows the market to freely buy up the currency that had seen it soar to over 30% vs the euro. USD/JPY moved 150 pips lower while USD/CHF has bounced from 0.7380 from 1.0220 while EUR/CHF probably bottomed at 0.8000. Many retail platforms have suspended trading the CHF in the currency tsunami effect.
With the SNB abandoning the EUR, this leaves the single currency very vulnerable, making a low of 1.1558 to the greenback already at a ten year low. The cross is matching Oct 2014 levels and is likely to find a strong support base here while risks remain to the downside on risk off play supporting the Yen while an extended period on the lows may resort to profit taking.
In over a 300 pip move to the downside, the EUR/JPY is starting to stablise at the 136 level. The move comes as the SNB scraps its cap on the CHF and allows the market to freely buy up the currency that had seen it soar to over 30% vs the euro. USD/JPY moved 150 pips lower while USD/CHF has bounced from 0.7380 from 1.0220 while EUR/CHF probably bottomed at 0.8000. Many retail platforms have suspended trading the CHF in the currency tsunami effect.
With the SNB abandoning the EUR, this leaves the single currency very vulnerable, making a low of 1.1558 to the greenback already at a ten year low. The cross is matching Oct 2014 levels and is likely to find a strong support base here while risks remain to the downside on risk off play supporting the Yen while an extended period on the lows may resort to profit taking.