- EUR/JPY: stocks under water, correction running out of steam?
- EUR/JPY: a quiet start to Asia, Tokyo to offer anything?
Capped by the 100-D SMA at 133.09, EUR/JPY was trading at its highest since 15th Feb in late Asia before a drop in US equities, (investors showed concerns over rising interest rates), and while the DXY runs up gains to just a few pips shy of the 90 handle. Currently, EUR/JPY is trading at 132.58, up 0.03% on the day, having posted a daily high at 132.66 and low at 132.54.
It is all quiet out there at the end of the week and the cross is stationary at the 100 hourly sma having just recovered from the sell-off down to 132.35. There are no market-moving data releases scheduled, although Japan has just released the March CPI data and in line with expectations, down from 1.5%yr in Feb at 1.1%yr, (well below Bank of Japan’s 2% target).
Eyes on Tokyo open, recovery capped?
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Instead, against a backdrop of higher global yields and looking ahead to the open of Tokyo, stocks are set to open in the red following Wall Street's performance and continued angst in the 'tech' sector as shares come under earnings pressure again - recovery capped here?
EUR/JPY level
EUR/JPY remains above the 200-D SMA at 132.25 while capped at the 100-D SMA and is consolidating within the relatively wide range as daily RSI turns lower. On a pause and a break higher again, eyes remain on the February 21 highs at 133.05/09.
Analysts at Commerzbank argued that dips lower should find interim support at the 131.82 late March high, "and further support along the two month support line at 131.73 as well as at the 131.16 November low. This guards the March low at 128.96."
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