16 Feb 2015
EUR/JPY: Risks to the downside increase - FXStreet
FXStreet (Bali) - EUR/JPY is recovering after a stop loss run below 135.00, and following a lower-than-expected Japanese Q4 GDP read, with Valeria Bednarik, Chief Analyst at FXStreet, noting that the risk ARE increasing towards the downside should an agreement with Greece not be reached today.
Key Quotes
"The EUR/JPY cross managed to advance some last week, reaching a high of 136.70 before finally capitulating to Yen self strength. The pair however, managed to hold above the 135.00 level, as hopes of a Greek deal kept the EUR slightly higher against its major rivals. The ongoing negotiations of the troubled country will extend during the upcoming days, with the risk increasing towards the downside in the pair should no agreement is reached."
"In the meantime, the 4 hours chart shows that the technical indicators have crossed their midlines to the downside and maintain a bearish slope, supporting a downward continuation. The pair trades between 100 and 200 SMAs, with the shortest around 134.00 acting as strong dynamic support for the upcoming days. A break below it therefore, is required to confirm a new leg south in the pair, eyeing 132.20 as next big strong support area."
Key Quotes
"The EUR/JPY cross managed to advance some last week, reaching a high of 136.70 before finally capitulating to Yen self strength. The pair however, managed to hold above the 135.00 level, as hopes of a Greek deal kept the EUR slightly higher against its major rivals. The ongoing negotiations of the troubled country will extend during the upcoming days, with the risk increasing towards the downside in the pair should no agreement is reached."
"In the meantime, the 4 hours chart shows that the technical indicators have crossed their midlines to the downside and maintain a bearish slope, supporting a downward continuation. The pair trades between 100 and 200 SMAs, with the shortest around 134.00 acting as strong dynamic support for the upcoming days. A break below it therefore, is required to confirm a new leg south in the pair, eyeing 132.20 as next big strong support area."