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14 Aug 2015
EUR/JPY: steady and firm, eyes June highs
FXStreet (Guatemala) - EUR/JPY is currently trading at 138.80 with a high of 138.83 and a low of 138.69.
EUR/JPY has been capped at current levels post a significant rally on the week, extending last week's gains from down at the 135.20 region. As a result of the dollar weakness, the euro has benefited in the face of the PBoC devaluing the Yuan and subsequently lifting immediate ideas of a September rate hike from the Fed.
The euro spiked from 1.1050 region on the sentiment to find space in the 1.12 handle and has remained light within the vicinity of 1.11/1.12 since as we approach the close for the week. EUR/JPY has been supported on the 138 handle with a strong bounce from 138.06 overnight.
EUR/JPY tucked in below key resistance
Karen Jones, chief analyst at Commerzbank explained that EUR/JPY practically reached the 100% Fibonacci extension of the July bounce at 138.85. 'If bettered, the June highs at 140.67/141.06 will be back in the picture, but we do not expect this resistance area to be breached. Slips should find support between the 137.35 late July high and the 200 day moving average at 136.96. Only a currently unexpected slip below the 135.00 level would open up the possibility of a slide to key support at 133.30/10, the lows seen since May, unfolding."
EUR/JPY has been capped at current levels post a significant rally on the week, extending last week's gains from down at the 135.20 region. As a result of the dollar weakness, the euro has benefited in the face of the PBoC devaluing the Yuan and subsequently lifting immediate ideas of a September rate hike from the Fed.
The euro spiked from 1.1050 region on the sentiment to find space in the 1.12 handle and has remained light within the vicinity of 1.11/1.12 since as we approach the close for the week. EUR/JPY has been supported on the 138 handle with a strong bounce from 138.06 overnight.
EUR/JPY tucked in below key resistance
Karen Jones, chief analyst at Commerzbank explained that EUR/JPY practically reached the 100% Fibonacci extension of the July bounce at 138.85. 'If bettered, the June highs at 140.67/141.06 will be back in the picture, but we do not expect this resistance area to be breached. Slips should find support between the 137.35 late July high and the 200 day moving average at 136.96. Only a currently unexpected slip below the 135.00 level would open up the possibility of a slide to key support at 133.30/10, the lows seen since May, unfolding."