21 Jan 2015
EUR/JPY recovers from lows but remains mixed over the ECB
FXStreet (Guatemala) - EUR/JPY is currently trading at 136.50 with a high of 137.34 and a low of 135.81, down 0.43% on the day.
EUR/JPY is heavy on the bak of market chatter that the ECB is said to propose €50bn in QE per month through 2016. The pair dropped to test 135.80 support and has been a mixed bag and volatile while markets try to decide whether to buy the euro on good news that the ECB are acting to strengthen the economy or to sell on the weakness of the EZ and risk of a softer single currency and greater supply of it.
Meanwhile, the greenback is stronger across the board and has recovered vs the Yen from the lows scored overnight when the BoJ left monetary policy unchanged, maintaining the targeted annual rise in the monetary base at JPY80 tn. The Central Bank also cut its inflation forecast.
The EUR/JPY has started to recover since falling on the back of the BoJ but should the pair come under supply for a test of the downside again, Karen Jones, chief analyst at Commerzbank explained that below 134.15 (October 2014 low) targets the 133.50/23.6% retracement of the move up from 2012. "Longer term failure here will introduce scope to 126.00/the 38.2% retracement".
EUR/JPY is heavy on the bak of market chatter that the ECB is said to propose €50bn in QE per month through 2016. The pair dropped to test 135.80 support and has been a mixed bag and volatile while markets try to decide whether to buy the euro on good news that the ECB are acting to strengthen the economy or to sell on the weakness of the EZ and risk of a softer single currency and greater supply of it.
Meanwhile, the greenback is stronger across the board and has recovered vs the Yen from the lows scored overnight when the BoJ left monetary policy unchanged, maintaining the targeted annual rise in the monetary base at JPY80 tn. The Central Bank also cut its inflation forecast.
The EUR/JPY has started to recover since falling on the back of the BoJ but should the pair come under supply for a test of the downside again, Karen Jones, chief analyst at Commerzbank explained that below 134.15 (October 2014 low) targets the 133.50/23.6% retracement of the move up from 2012. "Longer term failure here will introduce scope to 126.00/the 38.2% retracement".