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23 Oct 2015
EUR/JPY comes down to test 134.00
FXStreet (Edinburgh) - Thursday’s abrupt move lower in the shared currency has dragged EUR/JPY to test sub-134.00 levels, where it is now trying to consolidate.
EUR/JPY looks to PMIs for direction
The cross has come under strong selling pressure following yesterday’s dovish tone from Draghi’s press conference after the ECB left unchanged its monetary policy stance. The door is now (wide) open for further easing either via a deposits rate cut or a modification of the ongoing QE programme, adding further selling interest to EUR.
Data wise in japan, October’s flash manufacturing PMI came in at 52.5 vs. 50.6, while the Lading Index matched estimates at 103.5. Back to the euro area, preliminary manufacturing and services PMIs will be in the limelight.
EUR/JPY significant levels
The cross is now losing 0.01% at 134.05 and a breach of 133.56 (50% Fibo of 126.05-141.07) would aim for 133.11 (low Sep.23) and finally 132.18 (monthly low Sep.8). On the upside, the initial barrier lies at 134.54 (200-day ma) followed by 135.00 (psychological level) and then 135.75 (55-day sma).
EUR/JPY looks to PMIs for direction
The cross has come under strong selling pressure following yesterday’s dovish tone from Draghi’s press conference after the ECB left unchanged its monetary policy stance. The door is now (wide) open for further easing either via a deposits rate cut or a modification of the ongoing QE programme, adding further selling interest to EUR.
Data wise in japan, October’s flash manufacturing PMI came in at 52.5 vs. 50.6, while the Lading Index matched estimates at 103.5. Back to the euro area, preliminary manufacturing and services PMIs will be in the limelight.
EUR/JPY significant levels
The cross is now losing 0.01% at 134.05 and a breach of 133.56 (50% Fibo of 126.05-141.07) would aim for 133.11 (low Sep.23) and finally 132.18 (monthly low Sep.8). On the upside, the initial barrier lies at 134.54 (200-day ma) followed by 135.00 (psychological level) and then 135.75 (55-day sma).