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15 Dec 2014
EUR/JPY now moves lower post Abe victory
FXStreet (Guatemala) - EUR/JPY is trading at 147.67, down -0.07% on the day, having posted a daily high at 148.13 and low at 147.57.
EUR/JPY has followed suit of demand for the Yen as USD/JPY drops out of the tight opening range while markets start to return to desks and soak up the Abe victory. 147.80 is being tested as first support while 148.00 was probed on the open but lacking volume in thin opening Asian markets.
One might expect a volatile opening few sessions as we approach the final weeks of the year, but an Abe victory should underpin supply in the Yen as his Abenomics reform and monetary policy requires the printing of vast amounts of Yen.
Meanwhile, technically, with the accelerated uptrend that was eroded last week, the downside remains exposed in the case of a stronger Yen revealing the December 2013 peak as a key target. Resistance can be found ahead of spot at 147.68 (Hourly 100 SMA), 147.92 (Daily Open) and 148.00 (Weekly Classic PP). 147.53 (Hourly 20 EMA) is acting as initial support ahead of 147.09 (Daily Classic S1) and 146.95.
EUR/JPY has followed suit of demand for the Yen as USD/JPY drops out of the tight opening range while markets start to return to desks and soak up the Abe victory. 147.80 is being tested as first support while 148.00 was probed on the open but lacking volume in thin opening Asian markets.
One might expect a volatile opening few sessions as we approach the final weeks of the year, but an Abe victory should underpin supply in the Yen as his Abenomics reform and monetary policy requires the printing of vast amounts of Yen.
Meanwhile, technically, with the accelerated uptrend that was eroded last week, the downside remains exposed in the case of a stronger Yen revealing the December 2013 peak as a key target. Resistance can be found ahead of spot at 147.68 (Hourly 100 SMA), 147.92 (Daily Open) and 148.00 (Weekly Classic PP). 147.53 (Hourly 20 EMA) is acting as initial support ahead of 147.09 (Daily Classic S1) and 146.95.