- Falling Germany treasury yields amid increased safe-haven demand for the bunds, in wake of political concerns surrounding French elections likely to keep euro subdued.
- Further, expectations of deterioration in the German IFO surveys (due later in the EU session) could also keep the euro in the backseat.
- Focus also remains on the Euro area inflation data due on the cards later in the European session.
- Technically, bearish bias in the pair intact. Bears eye weekly 50-SMA at 118.80, break below could see test of rising trendline at 116.50.
Support levels - 119.31 (100-DMA), 118.80 (Weekly 50-SMA), 117.68 (200-DMA), 116.50 (trendline)
Resistance levels - 119.91 (5-DMA), 120.81 (20-DMA), 122.22 (cloud top)
TIME TREND INDEX OB/OS INDEX
1H Bearish Oversold
4H Bearish Near oversold
1D Bearish Neutral
1W Bearish Neutral
Call update: Our previous call (http://www.econotimes.com/FxWirePro-EUR-JPY-holds-major-trendline-support-at-11965-bias-lower-good-to-short-rallies-547650) has hit TP1.
Recommendation: We recommend holding for downside.
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -146.629(Highly Bearish), while Hourly JPY Spot Index was at 60.4398 (Bullish) at 0700 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
