Back
3 Mar 2014
EUR/JPY sentiments has turned bearish below 140.00
FXStreet (Moscow) - EUR/JPY crashed below 140.00 support level and touched the current lows at 139.45 as investors rushed to safe heaven Yen; the cross managed to reverse some losses and climbed to 139.77, but the the general sentiment is still bearish as long as the cross trades below 140.00.
ECB expectations or geopolitics?
Weekly EUR/JPY charts are full of indecision as nice bullish candles alternate with bearish doji candles with long shadows. On a daily basis the cross finished the series of three negative closes and a sequence of lower lows, but it is too early for the bulls to rejoice. As long as the resistance area of 141.00-141.20 is intact, EUR/JPY will continue to move within a broad range with the downside limited by 139.00-138.90. During European hours the cross might be influenced by EU Manufacturing PMI numbers. We do not expect big moves, but positive figures are likely to be Euro-supportive as they would deepen the market assurance that the ECB will not weaken its monetary policy this week. While lower than expected numbers will trigger the downside correction. And of course let’s not to forget about geopolitical tensions that may spill a great deal of volatility and support the Yen upside across the board. The key levels to watch on the intraday basis: 139.45 (the current intraday low) followed by strong support of 139.00 on the downside, and 140.00 followed by 140.49 on the upside.
What are today’s key EUR/JPY levels?
Today's central pivot point can be found at 140.25, with support below at 139.35, 138.22 and 137.32, with resistance above at 141.38, 142.28, and 143.41. Hourly Moving Averages are bearish, with the 200SMA at 140.39 and the daily 20EMA at 140.11. Hourly RSI is neutral at 42.
ECB expectations or geopolitics?
Weekly EUR/JPY charts are full of indecision as nice bullish candles alternate with bearish doji candles with long shadows. On a daily basis the cross finished the series of three negative closes and a sequence of lower lows, but it is too early for the bulls to rejoice. As long as the resistance area of 141.00-141.20 is intact, EUR/JPY will continue to move within a broad range with the downside limited by 139.00-138.90. During European hours the cross might be influenced by EU Manufacturing PMI numbers. We do not expect big moves, but positive figures are likely to be Euro-supportive as they would deepen the market assurance that the ECB will not weaken its monetary policy this week. While lower than expected numbers will trigger the downside correction. And of course let’s not to forget about geopolitical tensions that may spill a great deal of volatility and support the Yen upside across the board. The key levels to watch on the intraday basis: 139.45 (the current intraday low) followed by strong support of 139.00 on the downside, and 140.00 followed by 140.49 on the upside.
What are today’s key EUR/JPY levels?
Today's central pivot point can be found at 140.25, with support below at 139.35, 138.22 and 137.32, with resistance above at 141.38, 142.28, and 143.41. Hourly Moving Averages are bearish, with the 200SMA at 140.39 and the daily 20EMA at 140.11. Hourly RSI is neutral at 42.