EUR/JPY analysis: limited upward scope, on resurging yen's demand
|EUR/JPY Current price: 115.00
Continued weakness in the Japanese yen, has resulted in the EUR/JPY pair recovering within range, up to 115.32 last Friday, the highest in two weeks. The pair settled at 115.00, with the yen pressured by rising worldwide yields, although things may turn gloomy for the Japanese currency, as the Clinton-FBI affair will probably send investors into the safe-haven currency these upcoming days. Also, inflation in the country remains subdued, with core inflation back below zero in September for the first time since 2013. The news came a week ahead of the BOJ's economic policy meeting, and while the Central Bank is expected to remain on-hold, the background scenario is increasingly suggesting the need of more stimulus. From a technical point of view, the pair remains within the range defined late July between 112.00 and 116.35, now stuck around the 38.2% retracement of the post-Brexit's slump recovery. In the daily chart, the price has advanced above its 100 DMA, while the RSI indicator heads higher around 58, although the Momentum indicator has turned horizontal around its 100 level, limiting the upward potential. In the 4 hours chart, technical indicators are retreating from overbought territory, while the price has advanced beyond its moving averages that anyway maintain slight bearish slopes in the 114.00/30 region.
Support levels: 114.80 114.40 113.90
Resistance levels: 115.45 115.90 116.35
View Live Chart for the EUR/JPY
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.