EUR/JPY The Euro erased some of its losses against the safe haven Yen, but gains were limited as growing expectations for fresh stimulus measures by the European Central Bank and with the shocking policy move by the Swiss National Bank continued to weigh the single currency. Yesterday’s Swiss shock is continuing to react across all markets also through today’s session and ahead of significant data releases on Inflation reports to be announced in Europe and the US. In Japan, the Yen is strengthening due to risk aversion and is appreciating a lot versus the Euro. Last night medium volume data were released and were mixed up. Foreign bond investment rise significantly while Foreign investment in Japan stocks and Tertiary Industry Index fall. The technical view: Heavy selling for the EUR/JPY, most importantly after the 200 Moving Average crossed the 50 Moving Average indicating the Death cross and bearish signal to the pair. The pair is rebounding now as it is trading at 135.48 level as it even touched as low as 134.68 level the lowest since October 2013. The next strong Support level is significant as it has not been breached after the pair touched these levels a couple of times, will show us whether the pair will continue its drop. The 1st Support is at 134.02 the strongest support level as said and to continue the 2nd Support is at 132.54 and the 3rd Support level at 131.16. Reversely, for the pair to indicate us that it will remain in between boundaries and the obvious downtrend channel the 1st Resistance level is at 136.89. The 2nd Resistance level is seen at 137.52 and the 3rd Resistance level is at 138.82. Resistance Levels Support Levels 136.89 135.48 137.52 134.68 138.82 131.16 Disclaimer: *MPF Global Markets Ltd research reports and analytics are provided to you for informative purposes only and they can in no way be considered as a recommendation by MPFGM to you to engage in any trade. MPF Global Markets Ltd shall therefore not be held responsible for any outcome of your trading decisions in regards with these reports or similar reports. You hereby acknowledge that using the information detailed in these reports is at your sole responsibility and you will have no claims with regards to these reports against MPF Global Markets Ltd. If you do not agree to this, you are strongly advised not to use these reports.
Posted on: Fri, 16 Jan 2015 09:45:46 +0000
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