Fundamental Factors:
- Yen was sold-off last week into increased bond-buying plans announced by the BOJ which squashed tapering hopes.
- The BoJ announced JGB-buying plans and increased bond purchases in the 5-10 year maturity range.
- After two straight days of rises, EUR/JPY slightly weaker on the day as yen rises back on the bids.
- Risk-off across markets after Trump’s travel bans fuelled concerns over his protectionist policies and its impact on global trade.
Technical Studies:
- EUR/JPY finds major support by 50-DMA at 121.75, we see weakness only on break below.
- Below 50-DMA, the pair finds next strong support by daily cloud at 121.49.
- The pair is slightly weaker on the day, down 0.18% at the time of writing, but holds above 5-DMA.
- Technical studies support upside, RSI is above 50 levels MACD is showing a bullish crossover on signal line.
Support levels - 122.38 (5-DMA), 122.15 (20-DMA), 121.75 (50-DMA), 121.49 (cloud top)
Resistance levels - 122.95 (Jan 20 high), 123.80 (trendline), 124
Call update: Our previous call (http://www.econotimes.com/FxWirePro-EUR-JPY-holds-cloud-support-weakness-only-on-break-below-507599) has achieved TP1.
Recommendation: Hold for targets.
TIME TREND INDEX OB/OS INDEX
1H Neutral Neutral
4H Bearish Neutral
1D Bullish Neutral
1W Bullish Neutral
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -34.9741(Neutral), while Hourly JPY Spot Index was at -83.6124 (Bearish) at 0530 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
