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EUR/JPY: Follow through above 137.40 required - FXStreet

FXStreet (Bali) - EUR/JPY saw last Friday's gains erased on Monday, with Valeria Bednarik, Chief Analyst at FXStreet, noting that some follow through beyond 137.40 is now required to erase the current negative short term tone.

Key Quotes

"Yen recovered some ground against its majors rivals this Monday after its weak start, as stocks faltered around critical supports tested early Sunday opening: having traded in the red for most of the day, American indexes managed to regain half the ground lost yet remain vulnerable to a bearish run, now that the easy money may be gone for good."

"Technically the EUR/JPY trades back below the 137.00 mark, with a mild bearish tone coming from the 1 hour indicators, heading lower below their midlines, and with 100 and 200 SMAs in the mentioned chart flat around 136.20/30. In the 4 hours chart price behavior is quite uncertain on what’s next as candles show little bodies and long shadows either side of the board, while indicators turn lower above their midlines. The daily low around 136.60 comes as immediate support while some follow through beyond 137.40 is required to erase the current negative short term tone."

Session recap: Dollar down amid weaker US data; EUR/USD trades above 1.2700

The Dollar traded under pressure on Monday as investors sold the greenback amid weaker than expected PMI services and housing data. EUR/USD climbed above the 1.2700 level at 1.2720 before closing at 1.2700.
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Pound still vulnerable vs USD, JPY, CHF - JPMorgan

Despite the latest bounces, in view of Thomas Anthonj, FX Strategist at JP Morgan, the British Pound remains vulnerable against USD, JPY and CHF.
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