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27 Apr 2015
EUR/JPY: Top side likely limited by 55 DMA 131.01
FXStreet (Guatemala) - EUR/JPY is currently trading at 129.75 with a high of 129.89 and a low of 129.01.
EUR/JPY remains within the rising trend channel from 13th April lows at 126.09 and 130.11 24th April high. However, there is still some leg work to do yet if the cross is to gain full-on commitment from the bulls with 131.30/72 being the resistance that it needs to break ahead of strong congestion below 136.50.
The on going Greek debt scenario is a dark cloud over the EZ and the euro is starting to feel the pinch again as markets begin to lose faith and the eventuality of a deal being struck all the while Greece delay in coming forward with their intended reforms to the EZ ministers and Eurogroup's satisfaction. Other events come with the German CPI's this week and the BoJ that is widely expected to come with no changes to their policy for now.
Technically, Karen Jones, chief analyst at Commerzbank explained, "EUR/JPY is inching higher and at last the 20 day ma has been eroded– this opens the path to the top of the short term channel at 130.73, where the up-move should start to struggle. Just ahead of here lies the base of the daily cloud at 130.48 and the 55-day ma at 131.01 should cap the topside."
EUR/JPY remains within the rising trend channel from 13th April lows at 126.09 and 130.11 24th April high. However, there is still some leg work to do yet if the cross is to gain full-on commitment from the bulls with 131.30/72 being the resistance that it needs to break ahead of strong congestion below 136.50.
The on going Greek debt scenario is a dark cloud over the EZ and the euro is starting to feel the pinch again as markets begin to lose faith and the eventuality of a deal being struck all the while Greece delay in coming forward with their intended reforms to the EZ ministers and Eurogroup's satisfaction. Other events come with the German CPI's this week and the BoJ that is widely expected to come with no changes to their policy for now.
Technically, Karen Jones, chief analyst at Commerzbank explained, "EUR/JPY is inching higher and at last the 20 day ma has been eroded– this opens the path to the top of the short term channel at 130.73, where the up-move should start to struggle. Just ahead of here lies the base of the daily cloud at 130.48 and the 55-day ma at 131.01 should cap the topside."