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25 Apr 2016
EUR/JPY: finds bids on Wall Street - FXStreet
Valeria Bednarik, chief analyst at FXStreet explained that the Japanese yen started the week with a strong footing, underpinned by safe-haven's demand as stocks and commodities decline, and helped later on the day by comments coming from Japan´s Abe adviser Honda, who said that the BOJ can add some easing in June.
Key Quotes:
"Investors' were selling the JPY on speculation the Bank of Japan was going to announce some additional easing as soon as next Thursday, and the suspected delay gave the currency a breath.
Nevertheless, the yen turned lower in the US afternoon, as Wall Street trimmed early losses, resulting in the EUR/JPY pair surging to fresh daily highs of 125.45, as the common currency was also on demand.
From a technical point of view, the pair maintains a mild positive tone as in the 4 hours chart, the technical indicators have turned north well above their mid-lines, whilst the intraday decline was unable to clearly extend below the 50% retracement of the latest daily decline around 124.95, still the main support. Should the current rally extend above 125.70, the 61.8% retracement of the same decline, the advance can extend up to 126.60, a strong static midterm resistance."
Key Quotes:
"Investors' were selling the JPY on speculation the Bank of Japan was going to announce some additional easing as soon as next Thursday, and the suspected delay gave the currency a breath.
Nevertheless, the yen turned lower in the US afternoon, as Wall Street trimmed early losses, resulting in the EUR/JPY pair surging to fresh daily highs of 125.45, as the common currency was also on demand.
From a technical point of view, the pair maintains a mild positive tone as in the 4 hours chart, the technical indicators have turned north well above their mid-lines, whilst the intraday decline was unable to clearly extend below the 50% retracement of the latest daily decline around 124.95, still the main support. Should the current rally extend above 125.70, the 61.8% retracement of the same decline, the advance can extend up to 126.60, a strong static midterm resistance."