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27 Mar 2015
EUR/JPY: Downside wide open below Feb lows
FXStreet (Guatemala) - EUR/JPY is currently trading at 129.76 with a high of 129.86 and a low of 129.03.
EUR/JPY has been rising on the back of the minor recovery in EUR/USD that has been testing the 1.0880 resistance on the last trading session of the week. Technically, however, EUR/JPY lost upside momentum below last week’s high at 131.67 and the February low at 132.00, as noted by Karen Jones, chief analyst at Commerzbank. "As long as this resistance area caps on a daily chart closing basis, further downside pressure should be seen. We thus expect to see losses towards the recent low at 126.91."
For data, next week's calendar holds the Eurozone CPI on Tuesday 31st and this will be closely monitored. Analysts at TD Securities explained that the risks appear to lie to the upside for both the German inflation data on the 30th and the Eurozone print on the 31st. "Crude oil prices on average were about flat in March compared to Feb, and with that the drag from energy prices should ease again significantly in March. This should leave German inflation flat to +0.1% Y/Y (mkt flat), and should see Eurozone CPI edging up to -0.1% or -0.2% Y/Y (mkt -0.2%)."
EUR/JPY has been rising on the back of the minor recovery in EUR/USD that has been testing the 1.0880 resistance on the last trading session of the week. Technically, however, EUR/JPY lost upside momentum below last week’s high at 131.67 and the February low at 132.00, as noted by Karen Jones, chief analyst at Commerzbank. "As long as this resistance area caps on a daily chart closing basis, further downside pressure should be seen. We thus expect to see losses towards the recent low at 126.91."
For data, next week's calendar holds the Eurozone CPI on Tuesday 31st and this will be closely monitored. Analysts at TD Securities explained that the risks appear to lie to the upside for both the German inflation data on the 30th and the Eurozone print on the 31st. "Crude oil prices on average were about flat in March compared to Feb, and with that the drag from energy prices should ease again significantly in March. This should leave German inflation flat to +0.1% Y/Y (mkt flat), and should see Eurozone CPI edging up to -0.1% or -0.2% Y/Y (mkt -0.2%)."