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22 May 2015
EUR/JPY: are we now headed to 55 DMA?
FXStreet (Guatemala) - EUR/JPY is currently trading at 133.96 with a high of 135.34 and low of 133.72.
EUR/JPY has fallen away significantly to below the 134 handle and penetrated the ascending support line from 133.92 (20th May business). The cross is taken lower on the back of EUR/USD down to test the 1.1000 psychological level with US CPI's falling in line with where the Fed need them to be in respect to actioning their commitment to raising rates at some stage, and given that the US is the only developed economy that is committing to such action, the dollar is in demand ahead of Yellen's speech on the economy today at 11am EST.
EUR/JPY at 133.12 would be a big level as the May bounce where committed bulls stepped back in at a level that has not been tested since before the cross reached the vicinity of 137.00 on 18th May business. So we are looking for closes now below last week's low of 133.49 for attentions to stop in at the 131.00 55 day ma then 126.08 low, as suggested by Karen Jones, chief analyst at Commerzbank. "Rallies should ideally terminate 135.35, key resistance remains 136.70/137.25 – the February high and 200 day ma."
EUR/JPY has fallen away significantly to below the 134 handle and penetrated the ascending support line from 133.92 (20th May business). The cross is taken lower on the back of EUR/USD down to test the 1.1000 psychological level with US CPI's falling in line with where the Fed need them to be in respect to actioning their commitment to raising rates at some stage, and given that the US is the only developed economy that is committing to such action, the dollar is in demand ahead of Yellen's speech on the economy today at 11am EST.
EUR/JPY at 133.12 would be a big level as the May bounce where committed bulls stepped back in at a level that has not been tested since before the cross reached the vicinity of 137.00 on 18th May business. So we are looking for closes now below last week's low of 133.49 for attentions to stop in at the 131.00 55 day ma then 126.08 low, as suggested by Karen Jones, chief analyst at Commerzbank. "Rallies should ideally terminate 135.35, key resistance remains 136.70/137.25 – the February high and 200 day ma."