21 Jan 2014
EUR/JPY en route towards 141.40, Nikkei 225 underpins
FXstreet.com (Bali) - EUR/JPY is trading at 141.20, with the price unchanged for the week after the recovery off 7-week low at 140.30.
EUR/JPY price behaviour
Despite the tolerance to weaker levels, the EUR/JPY managed to find strong buying interest on dips, communication that the market remains quite comfortable adding into Yen shorts on strength.
Monday's close, above 141.00/141.10, is a technically favourable outcome for Tuesday Asian trading, which combined with a +0.80% open in the Nikkei 225, is allowing the rate to stay at 141.35, session high.
EUR/JPY technicals
According to Valeria Bednarik, Chief Analyst at FXStreet: "The upside continues to be seen limited, with 100 and 200 SMAs offering now dynamic resistance in the 141.90 area, and indicators losing upward potential but holding in positive territory."
"In the 4h chart, indicators hold below midlines, while price develops also below moving averages, supporting the overall negative outlook. Price recoveries above 141.75 however, will likely favor further advances, eyeing the 142.60/80 zone for this Tuesday", Bednarik added.
EUR/JPY price behaviour
Despite the tolerance to weaker levels, the EUR/JPY managed to find strong buying interest on dips, communication that the market remains quite comfortable adding into Yen shorts on strength.
Monday's close, above 141.00/141.10, is a technically favourable outcome for Tuesday Asian trading, which combined with a +0.80% open in the Nikkei 225, is allowing the rate to stay at 141.35, session high.
EUR/JPY technicals
According to Valeria Bednarik, Chief Analyst at FXStreet: "The upside continues to be seen limited, with 100 and 200 SMAs offering now dynamic resistance in the 141.90 area, and indicators losing upward potential but holding in positive territory."
"In the 4h chart, indicators hold below midlines, while price develops also below moving averages, supporting the overall negative outlook. Price recoveries above 141.75 however, will likely favor further advances, eyeing the 142.60/80 zone for this Tuesday", Bednarik added.