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24 Feb 2015
EUR/JPY could drop to 133.50 by month-end – FXStreet
FXStreet (Barcelona) - FXStreet Editor and Analyst, Omkar Godbole, uses macro and technicals to explain that EUR/JPY could drop lower to 133.50 by this month-end.
Key Quotes
“The EUR/JPY pair has recovered more than 500 pips from the low of 130.13 hit on Jan. 25th 2015. The pair currently trades at 135.14, after having bounced-off from the 23.6% Fib retracement of (149.76-130.13) located at 134.75.”
“Since the second week of the current month, the pair has been trading above 134.75, despite which it has struggled to extend gains above 136.00 levels.”
“The pair could drop to 133.50 levels as –
…dovish comments from Fed chair later today could result in sharp fall in the Treasury yields, resulting in strength in the Japanese Yen.
Given the divergence, the Japanese Yen could benefit more than the Euro in case of a dovish turn by the Fed chair Yellen later today.
The single currency has remained range bound despite an upbeat economic data across the Eurozone and Germany.”
“On Technical grounds, the pair has repeatedly struggled around 136.00 levels. Thus, the pair is likely to see fresh selling pressure so long as it trades below 136.00 levels.”
“A break above 136.00 risks sending the pair higher to 136.92 (weekly 100-MA) levels.”
Key Quotes
“The EUR/JPY pair has recovered more than 500 pips from the low of 130.13 hit on Jan. 25th 2015. The pair currently trades at 135.14, after having bounced-off from the 23.6% Fib retracement of (149.76-130.13) located at 134.75.”
“Since the second week of the current month, the pair has been trading above 134.75, despite which it has struggled to extend gains above 136.00 levels.”
“The pair could drop to 133.50 levels as –
…dovish comments from Fed chair later today could result in sharp fall in the Treasury yields, resulting in strength in the Japanese Yen.
Given the divergence, the Japanese Yen could benefit more than the Euro in case of a dovish turn by the Fed chair Yellen later today.
The single currency has remained range bound despite an upbeat economic data across the Eurozone and Germany.”
“On Technical grounds, the pair has repeatedly struggled around 136.00 levels. Thus, the pair is likely to see fresh selling pressure so long as it trades below 136.00 levels.”
“A break above 136.00 risks sending the pair higher to 136.92 (weekly 100-MA) levels.”