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11 Jun 2014
EUR/JPY is clutching to 138.45/50 support
FXStreet (Moscow) - EUR/JPY is slightly down on the day as the cross opened at 138.52 and dipped to current low of 138.37 before stabilizing at 138.47.
From bad to worse
EUR/JPY settled deeply below 139.00 and this is not the limit. The cross is influenced by negative EUR/USD dymanics caused by capital outflows on the back of negative deposit rate. Moreover, the single currency has joined the ranks of funding currency for carry trades and now it is ready to compete with JPY for the status of most attractive funding currency. Meanwhile the future of the Japanese currency is unclear as it is torn apart by conflicting factors such as weakening domestic fundamentals and less dovish central bank. On the intraday basis EUR/JPY might dip to the area of stops at 138.20 and to 138.00. The upside correction is likely to be limited by 138.70.
What are today’s key EUR/JPY levels?
Today's central pivot point can be found at 138.85, with support below at 138.25, 137.85 and 137.25, with resistance above at 139.25, 139.85, and 140.25. Hourly Moving Averages are bearish with the 200SMA at 139.63 and the daily 20EMA at 139.47. Hourly RSI is bearish at 22.
From bad to worse
EUR/JPY settled deeply below 139.00 and this is not the limit. The cross is influenced by negative EUR/USD dymanics caused by capital outflows on the back of negative deposit rate. Moreover, the single currency has joined the ranks of funding currency for carry trades and now it is ready to compete with JPY for the status of most attractive funding currency. Meanwhile the future of the Japanese currency is unclear as it is torn apart by conflicting factors such as weakening domestic fundamentals and less dovish central bank. On the intraday basis EUR/JPY might dip to the area of stops at 138.20 and to 138.00. The upside correction is likely to be limited by 138.70.
What are today’s key EUR/JPY levels?
Today's central pivot point can be found at 138.85, with support below at 138.25, 137.85 and 137.25, with resistance above at 139.25, 139.85, and 140.25. Hourly Moving Averages are bearish with the 200SMA at 139.63 and the daily 20EMA at 139.47. Hourly RSI is bearish at 22.