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20 Nov 2015
EUR/JPY set for the sixth consecutive week of loss
FXStreet (Mumbai) - The EUR/JPY pair is set to extend the losing streak for the sixth consecutive week after Draghi threw EUR under the bus with his dovish comments earlier today.
Lowest weekly closing since May
The pair is about to suffer its lowest weekly closing since May. The common currency was on a losing streak for the last four weeks, including the current one mainly on account of increased expectations of more ECB stimulus in December.
A probability of the pair snapping the five-week losing streak was high, but hopes were dashed after Draghi stressed the need to do more citing low inflation and a slowdown in the recovery. His comments pushed the EUR lower. Meanwhile, a rebound in Japan’s trade balance into surplus reported on Thursday also kept a lid on gains.
EUR/JPY Technical Levels
At 131.13, the immediate resistance is located at 131.60 (5-DMA + hourly 100-MA), above which the pair could run into hourly 200-MA at 131.79. On the other hand, a break below 131.00 would expose 130.14 (Jan 2015 low).
Lowest weekly closing since May
The pair is about to suffer its lowest weekly closing since May. The common currency was on a losing streak for the last four weeks, including the current one mainly on account of increased expectations of more ECB stimulus in December.
A probability of the pair snapping the five-week losing streak was high, but hopes were dashed after Draghi stressed the need to do more citing low inflation and a slowdown in the recovery. His comments pushed the EUR lower. Meanwhile, a rebound in Japan’s trade balance into surplus reported on Thursday also kept a lid on gains.
EUR/JPY Technical Levels
At 131.13, the immediate resistance is located at 131.60 (5-DMA + hourly 100-MA), above which the pair could run into hourly 200-MA at 131.79. On the other hand, a break below 131.00 would expose 130.14 (Jan 2015 low).