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27 May 2014
EUR/JPY pokes its head above 139.00
FXStreet (Bali) - While Monday saw order flows limited on London/NY public holidays, EUR/JPY made some small progress taking the rate marginally above 139.00 for a potential break higher.
The pair managed to recover off its 138.70 low printed in the last Asian session to end Monday at 139.05, despite the dovish words by ECB President Mario Draghi, who crossed the wires to remind the market of his decisiveness to announce a QE program should low inflation persist for too long, saying that "at other end of spectrum a downshift in inflation expectations would be context for broad based asset buying plan."
Valeria Bednarik, Chief Analyst at FXStreet, notes: "The hourly chart shows price pivoting right above its 200 SMA, as indicators turn slightly lower in positive territory. In the 4 hours chart the outlook is mildly positive, with price pressuring recent highs and indicators aiming higher in positive territory, although moving averages remain well above current price and heading lower, which limits chances of a strong upward rally. As commented on previous updates, price needs to extend beyond the 140.40 level to look constructive and regain the upside in the upcoming sessions."
The pair managed to recover off its 138.70 low printed in the last Asian session to end Monday at 139.05, despite the dovish words by ECB President Mario Draghi, who crossed the wires to remind the market of his decisiveness to announce a QE program should low inflation persist for too long, saying that "at other end of spectrum a downshift in inflation expectations would be context for broad based asset buying plan."
Valeria Bednarik, Chief Analyst at FXStreet, notes: "The hourly chart shows price pivoting right above its 200 SMA, as indicators turn slightly lower in positive territory. In the 4 hours chart the outlook is mildly positive, with price pressuring recent highs and indicators aiming higher in positive territory, although moving averages remain well above current price and heading lower, which limits chances of a strong upward rally. As commented on previous updates, price needs to extend beyond the 140.40 level to look constructive and regain the upside in the upcoming sessions."