27 Jan 2015
EUR/JPY up Y3 from last Asian low
FXStreet (Bali) - EUR/JPY managed to recover over 3 cents from the last Asian lows, with Syriza's victory-induced selling in the Euro easing as traders take profits.
Prior to the start of the week, EUR/JPY had depreciated for 4 weeks in a row, for a total of -Y13.75, which translates in a whopping -9.4%. It is no wonder that traders opted to act more cautious on extending further downside, as the sequence of weekly falls extending to 5 weeks has only happened twice since October 2003, the last time being during May 2012.
According to Valeria Bednarik, Chief Analyst at FXStreet: "The 1 hour chart shows indicators losing upward strength in positive territory, whilst 100 and 200 SMAs maintain strong bearish slopes well above current price. In the 4 hours chart indicators corrected oversold readings and continue to head north well below their midlines, suggesting further gains are likely if the pair breaks the immediate Fibonacci resistance at 133.70, aiming for a test of 134.55, 61.8% of the same rally."
Prior to the start of the week, EUR/JPY had depreciated for 4 weeks in a row, for a total of -Y13.75, which translates in a whopping -9.4%. It is no wonder that traders opted to act more cautious on extending further downside, as the sequence of weekly falls extending to 5 weeks has only happened twice since October 2003, the last time being during May 2012.
According to Valeria Bednarik, Chief Analyst at FXStreet: "The 1 hour chart shows indicators losing upward strength in positive territory, whilst 100 and 200 SMAs maintain strong bearish slopes well above current price. In the 4 hours chart indicators corrected oversold readings and continue to head north well below their midlines, suggesting further gains are likely if the pair breaks the immediate Fibonacci resistance at 133.70, aiming for a test of 134.55, 61.8% of the same rally."