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13 Apr 2015
EUR/JPY: Downside prevails below 128.15
FXStreet (Guatemala) - EUR/JPY is currently trading at 126.92 with a high of 127.83 and a low of 126.49.
EUR/JPY has made a very minor recovery on to the 127 handle, but 127.20 territory resistance caps the pair and headwinds continue to pressure the cross lower fuelled by the Yens drop form the mid 102.80's to a cent below. The recovery in the Yen back onto the 120 handle pulled the cross up, but offers are dominant across the FX space in the Japanese currency.
Camilla Sutton, chief currency strategist at Scotiabank explained, in respect of the euro area, the focus this week remains on developments in Greece, with the most recent rumour being the risk of another election, where PM Tsipras would attempt to win a majority (this would be EUR negative); as well as developments at the ECB.
Sutton continued and explained that, "Interest rates and the QE program are likely to be maintained on hold, with the focus turning towards President Draghi’s press conference. He is likely to reiterate the successful start to QE, and some encouraging shifts in the economy; however for markets it is still too early to be looking towards potential signals for a tapering in QE."
Technically, the market is bearish in the cross and Karen Jones, chief analyst at Commerzbank said, "Intraday rallies are indicated to terminate circa 128.15,"
while accompanying analyses can be read further here.
EUR/JPY has made a very minor recovery on to the 127 handle, but 127.20 territory resistance caps the pair and headwinds continue to pressure the cross lower fuelled by the Yens drop form the mid 102.80's to a cent below. The recovery in the Yen back onto the 120 handle pulled the cross up, but offers are dominant across the FX space in the Japanese currency.
Camilla Sutton, chief currency strategist at Scotiabank explained, in respect of the euro area, the focus this week remains on developments in Greece, with the most recent rumour being the risk of another election, where PM Tsipras would attempt to win a majority (this would be EUR negative); as well as developments at the ECB.
Sutton continued and explained that, "Interest rates and the QE program are likely to be maintained on hold, with the focus turning towards President Draghi’s press conference. He is likely to reiterate the successful start to QE, and some encouraging shifts in the economy; however for markets it is still too early to be looking towards potential signals for a tapering in QE."
Technically, the market is bearish in the cross and Karen Jones, chief analyst at Commerzbank said, "Intraday rallies are indicated to terminate circa 128.15,"
while accompanying analyses can be read further here.