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5 Jun 2014
EUR/JPY declines post ECB rate cut
FXStreet (London) - EUR/JPY was understandably range bound through the European morning in the build up to the most hotly anticipated ECB meeting of recent months, and initially climbed in the immediate aftermath of the decision.
The ECB decision to trim rates to 0.15% caused spot to initial climb to 139.80 before reversing to where spot is presently trading at 139.09. Doubtless, the rate cut indicates that the upcoming press conference will be a lively event.
EUR/JPY Technicals
EUR/JPY has declined sharply, and looks to be finding a touch of near term psychological support above 139. Further, on a four hour chart we can see that the 50 and 100 SMAs have met, with the 50 looking to be crossing lower, just as spot looks to be making contact. Daily RSI sits at 49.63 for now, in neutral territory, while daily 2-standard deviation volatility bandwidth is at 254 pips and shrinking.
Looking to levels we see that spot is presently trading at 139.09, and next resistance can be seen at 139.29 (Hourly 100 SMA), 139.31 (Daily Classic S2), 139.44 (Weekly Classic R1), 139.51 (Daily Classic S1) and 139.52 (Daily 20 SMA). To the downside we see next support at 139.06 (Daily Classic S3), 139.01 (Hourly 200 SMA), 139.00 (Daily Low), 138.71 (Weekly Classic PP) and 138.49 (Daily 200 SMA).
The ECB decision to trim rates to 0.15% caused spot to initial climb to 139.80 before reversing to where spot is presently trading at 139.09. Doubtless, the rate cut indicates that the upcoming press conference will be a lively event.
EUR/JPY Technicals
EUR/JPY has declined sharply, and looks to be finding a touch of near term psychological support above 139. Further, on a four hour chart we can see that the 50 and 100 SMAs have met, with the 50 looking to be crossing lower, just as spot looks to be making contact. Daily RSI sits at 49.63 for now, in neutral territory, while daily 2-standard deviation volatility bandwidth is at 254 pips and shrinking.
Looking to levels we see that spot is presently trading at 139.09, and next resistance can be seen at 139.29 (Hourly 100 SMA), 139.31 (Daily Classic S2), 139.44 (Weekly Classic R1), 139.51 (Daily Classic S1) and 139.52 (Daily 20 SMA). To the downside we see next support at 139.06 (Daily Classic S3), 139.01 (Hourly 200 SMA), 139.00 (Daily Low), 138.71 (Weekly Classic PP) and 138.49 (Daily 200 SMA).