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21 Apr 2015
EUR/JPY likely to test 126 in the near-term – FXStreet
FXStreet (Barcelona) - FXStreet Editor and Analyst, Dhwani Mehta, sees risk for EUR/JPY being tilted to the downside, anticipating a move lower towards 126 on a break below 126.80.
Key Quotes
“Technically, on the daily chart, EUR/JPY continues to trade in a short-term downtrend channel, with cross finding good support at 126 levels. On the same chart, the cross remains below all its moving averages indicating persistent underlying weakness.”
“Moreover, the pair broke below the crucial 10-DMA located at 127.70, which triggered a fresh sell-off, knocking-off EUR/JPY to session lows at 127.46.”
“Currently, the cross continues to trade around the 10-DMA support-turned resistance indicating more room for declines. The daily RSI at sub 40 remains in the bear range and aims lower, also supporting the case for further downside in the making.”
“Greece crisis is likely to be the dominating theme in the week ahead with the shared currency expected to remain pressured across the board. This may support the case for EUR/JPY to retest of 126 levels in the near term.”
“The pair is likely to find a good support at 126.80, below which EUR bears may take over, driving EUR/JPY to 126 handle.”
“However, a failure to breach 126.80 levels, the pair may rebound to 128.70 resistance zone.”
Key Quotes
“Technically, on the daily chart, EUR/JPY continues to trade in a short-term downtrend channel, with cross finding good support at 126 levels. On the same chart, the cross remains below all its moving averages indicating persistent underlying weakness.”
“Moreover, the pair broke below the crucial 10-DMA located at 127.70, which triggered a fresh sell-off, knocking-off EUR/JPY to session lows at 127.46.”
“Currently, the cross continues to trade around the 10-DMA support-turned resistance indicating more room for declines. The daily RSI at sub 40 remains in the bear range and aims lower, also supporting the case for further downside in the making.”
“Greece crisis is likely to be the dominating theme in the week ahead with the shared currency expected to remain pressured across the board. This may support the case for EUR/JPY to retest of 126 levels in the near term.”
“The pair is likely to find a good support at 126.80, below which EUR bears may take over, driving EUR/JPY to 126 handle.”
“However, a failure to breach 126.80 levels, the pair may rebound to 128.70 resistance zone.”