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3 Jun 2014
EUR/JPY reaches 2-week high after EZ data
FXStreet (Córdoba) - The EUR/JPY advanced to fresh daily highs right after the release of the Eurozone’s Apr unemployment rate and May CPI which came in mixed.
While the unemployment rate edged down to 11.7% versus 11.8% expected, the consumer price index grew at a slower annual pace of 0.5% in May versus 0.7% expected. The EUR/JPY rose to a fresh high of 139.42, surpassing its Asian session peak of 139.33, but lacked momentum to extend gains beyond that level. The EUR/JPY is currently trading at 139.35, still up 0.11% on the day.
Soft inflation figures and persistently high unemployment levels support expectations the ECB will cut interest rates Thursday and probably leave the door open for further unconventional easing measures in order to support the economic recovery and fight deflation threats.
EUR/JPY technical level
In terms of technical levels, the EUR/JPY could find next resistances at 139.49 (21-day SMA), 139.85 (May 15 high) and 140.00 (psychological level). On the other hand, supports are seen at 138.65 (Jun 2 low), 138.30 (200-day SMA) and 138.07/00 (May 30 low/psychological level).
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While the unemployment rate edged down to 11.7% versus 11.8% expected, the consumer price index grew at a slower annual pace of 0.5% in May versus 0.7% expected. The EUR/JPY rose to a fresh high of 139.42, surpassing its Asian session peak of 139.33, but lacked momentum to extend gains beyond that level. The EUR/JPY is currently trading at 139.35, still up 0.11% on the day.
Soft inflation figures and persistently high unemployment levels support expectations the ECB will cut interest rates Thursday and probably leave the door open for further unconventional easing measures in order to support the economic recovery and fight deflation threats.
EUR/JPY technical level
In terms of technical levels, the EUR/JPY could find next resistances at 139.49 (21-day SMA), 139.85 (May 15 high) and 140.00 (psychological level). On the other hand, supports are seen at 138.65 (Jun 2 low), 138.30 (200-day SMA) and 138.07/00 (May 30 low/psychological level).
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