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3 Jun 2014
EUR/JPY records 3rd winning day in a row
FXStreet (Bali) - The Yen under-performed on Monday, and despite Euro displayed a weak-to-neutral tone, it was enough to eke out some gains, rising from 138.70 to 139.20, with the bullish note retained at the Tokyo open.
The Japanese Yen traded heavy throughout Monday, on a combination of a soaring Nikkei 225 - breaking the 15,00 mark - , coupled with rising US bond yields and expectations that Japan will sooner or later announce an aggressive diversification of its GPIF portfolio, potentially increasing its foreign assets' holding by as much as $200 billion.
According to Valeria Bednarik, Chief Analyst at FXStreet: "Price so far is being capped by past May 27th daily high around 139.40, yet steady gains above should anticipate more gains in the pair, eyeing an approach to the 140.00 figure. Stronger support lies ahead in the 140.40 level and with be only above this last that the pair will be able to resume its upward trend. Back below 138.80 on the other hand will deny the possibility of a short term recovery and expose the pair to a retest of the 137.90 price zone."
The Japanese Yen traded heavy throughout Monday, on a combination of a soaring Nikkei 225 - breaking the 15,00 mark - , coupled with rising US bond yields and expectations that Japan will sooner or later announce an aggressive diversification of its GPIF portfolio, potentially increasing its foreign assets' holding by as much as $200 billion.
According to Valeria Bednarik, Chief Analyst at FXStreet: "Price so far is being capped by past May 27th daily high around 139.40, yet steady gains above should anticipate more gains in the pair, eyeing an approach to the 140.00 figure. Stronger support lies ahead in the 140.40 level and with be only above this last that the pair will be able to resume its upward trend. Back below 138.80 on the other hand will deny the possibility of a short term recovery and expose the pair to a retest of the 137.90 price zone."