EUR/JPY: smashed lower on BoJ expectations shifting - FXStreet
|Valeria Bednarik, chief analyst at FXStreet explained that the EUR/JPY pair fell down to 114.45 as hopes for massive stimulus faded on news the upcoming fiscal stimulus, to be announced early August, falls short of expectations.
Key Quotes:
"Market talks over a 10trillion yen plan got smashed after a leak showed that the supplementary budget for fiscal 2016 will likely provide around 2 trillion yen, with much of it intended for public work. The pair bounced from the mentioned low, but was barely able to settle above the 115.00 level by the US close, holding on to its negative tone in the short term, as in the 1 hour chart, the 100 SMA has accelerated lower below the 200 SMA, well above the current level, while the technical indicators lost upward strength around their mid-lines, after correcting extreme oversold readings reached earlier in the day. In the 4 hours chart, the price has broken below its 100 SMA, now holding right below it, while the technical indicators remain within negative territory, with no certain directional strength. The pair has a strong Fibonacci support around 114.20, the 38.2% retracement of the post-Brexit´s slide, and the level to break to confirm additional slides this Wednesday."
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