10 Mar 2016
EUR/JPY: Upside remains capped by 124.90
The bulls are seen struggling to keep the bids as progress towards the European open, with EUR/JPY failing yet again to take out the strong resistance at 124.90.
EUR/JPY flat-lined below 123.70
The EUR/JPY pair trades modestly flat at 124.76, and struggles to sustain at higher levels. The cross in the EUR/JPY eased-off highs, although remains supported on the back of the ongoing weakness seen in the Japanese currency against its US counterpart, as the safe-haven bids for the yen dissipated following the rebound in the Japanese equities and upbeat China inflation report.
In the day ahead, the risk remains to the downside for the cross as the EUR may accelerate losses, should the ECB decision turn out extra dovish, with the central bank cutting rates further into the negative territory and/or announcing an extension of the QE program.
EUR/JPY Levels to consider
The pair has an immediate resistance at 124.90/ 125 (daily high/ round number), above which 125.20/45 (daily R1/ Mar 7 High) would be tested. On the flip side, support is seen at 124.46/50 (1h 20 & 100-SMA) below which it could extend losses to towards 124.18/03 (1h 50 & 200-SMA).
EUR/JPY flat-lined below 123.70
The EUR/JPY pair trades modestly flat at 124.76, and struggles to sustain at higher levels. The cross in the EUR/JPY eased-off highs, although remains supported on the back of the ongoing weakness seen in the Japanese currency against its US counterpart, as the safe-haven bids for the yen dissipated following the rebound in the Japanese equities and upbeat China inflation report.
In the day ahead, the risk remains to the downside for the cross as the EUR may accelerate losses, should the ECB decision turn out extra dovish, with the central bank cutting rates further into the negative territory and/or announcing an extension of the QE program.
EUR/JPY Levels to consider
The pair has an immediate resistance at 124.90/ 125 (daily high/ round number), above which 125.20/45 (daily R1/ Mar 7 High) would be tested. On the flip side, support is seen at 124.46/50 (1h 20 & 100-SMA) below which it could extend losses to towards 124.18/03 (1h 50 & 200-SMA).