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20 May 2014
EUR/JPY survives 138.00 test for now
FXStreet (Bali) - EUR/JPY is presently at 139.12, having found bids at a new 3-month low of 138.60 before recovering back above 139.00 along US hours.
Bond sentiment in the US had a dramatic shift, with the 10-yr yield moving from 2.49% to 2.54% as the huge long play in bond bidding appears to be now running out of steam, an activity that benefited JPY crosses. However, the bounce in EUR/JPY felt somewhat limited, as 1.3730 resistance in EUR/USD keeps being rejected.
EUR/JPY technicals
Technically, Valeria Bednarik, Chief Analyst at FXStreet, notes: "The hourly chart shows price developing below bearish moving averages, with 100 one offering dynamic resistance now in the 139.40 area and indicators aiming higher still below their midlines."
In the 4 hours chart, Valeria notes that "technical readings also look a bit exhausted to the downside and point at least for an upward corrective movement, towards mentioned resistance."
"Nevertheless if the level holds bears will maintain control over the pair with renewed selling interest below 138.80 supporting a run towards 137.90 price zone", Bednarik adds.
Bond sentiment in the US had a dramatic shift, with the 10-yr yield moving from 2.49% to 2.54% as the huge long play in bond bidding appears to be now running out of steam, an activity that benefited JPY crosses. However, the bounce in EUR/JPY felt somewhat limited, as 1.3730 resistance in EUR/USD keeps being rejected.
EUR/JPY technicals
Technically, Valeria Bednarik, Chief Analyst at FXStreet, notes: "The hourly chart shows price developing below bearish moving averages, with 100 one offering dynamic resistance now in the 139.40 area and indicators aiming higher still below their midlines."
In the 4 hours chart, Valeria notes that "technical readings also look a bit exhausted to the downside and point at least for an upward corrective movement, towards mentioned resistance."
"Nevertheless if the level holds bears will maintain control over the pair with renewed selling interest below 138.80 supporting a run towards 137.90 price zone", Bednarik adds.