EUR/JPY rallies the hardest vs EUR/CHF as CHF/JPY spikes following ECB


  • EUR/JPY rallies hard following hawkish ECB cut and trade war optimism. 
  • EUR/JPY tracking positive sentiment in financial and commodity markets. 

While the trade war tensions seem to be easing, with stocks climbing and risk appetite returning in droves to financial and commodity markets, EUR/JPY is up 0.79% on the US session so far following what has been perceived as a hawkish rate cut from the European Central Bank earlier today.

EUR/JPY is currently trading at 119.65 having ranged between a low of 117.55 and 119.82, whipsawed over the ECB announcements before gaining bullish traction towards the 2nd August spike high at 119.87.

ECB QA is likely to be with us for a considerably long time

The main take away from today's ECB policy announcements is that QA is likely to be with us for a considerably long time considering policy is explicitly linked to the central bank's inflation target while it is up to the individual nations to offer fiscal stimulus. However, with only a 10bps rate cut and €20bn/month of QE, some observers feel this was not enough. 

"We don't think that the ECB has delivered enough. We think it will have to deliver at least two more 10bps rate cuts in December and March, as well as to augment the pace of QE to €40bn/month in March once the global macro environment worsens further," analysts at TD Securities argued.

EUR/USD key technical thresholds held, in both directions - What this means is the Swiss National Bank are likely to refrain from too much intervention for the time being considering the euro has not broken the lower boundaries on a slightly disappointing outcome from the ECB

EUR/JPY bulls pile in, CHF/JPY caps EUR/CHF's advance

The SNB declined to comment about the possible implications for its own monetary policy. Denmarks National bank cut its key policy rate by 10bp to minus 0.75% after the ECB's announcements. EUR/JPY has rallied the furthest and CHF/JPY has continued higher by 0.70%.

"This lack of a strong directional cue suggests investors will pivot quickly to next week's FOMC meeting for guidance. The ECB's policy measures may be "adequate", but we think that leaves the market in need of fresh catalysts to provide more of a push to escape recent ranges," analysts at TD Securities explained. 

EUR/JPY levels

EUR/JPY

Overview
Today last price 119.66
Today Daily Change 0.94
Today Daily Change % 0.79
Today daily open 118.72
 
Trends
Daily SMA20 117.74
Daily SMA50 119.34
Daily SMA100 121.01
Daily SMA200 123.32
Levels
Previous Daily High 119.18
Previous Daily Low 118.29
Previous Weekly High 118.62
Previous Weekly Low 115.86
Previous Monthly High 120.72
Previous Monthly Low 116.57
Daily Fibonacci 38.2% 118.63
Daily Fibonacci 61.8% 118.84
Daily Pivot Point S1 118.28
Daily Pivot Point S2 117.84
Daily Pivot Point S3 117.4
Daily Pivot Point R1 119.17
Daily Pivot Point R2 119.61
Daily Pivot Point R3 120.05

 

 

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD tension remains elevated ahead of the Fed

EUR/USD is trading around 1.1050, confined to a narrow range ahead of the all-important Fed decision. Chair Powell is set to cut rates by 25bps but signal no further stimulus is on the cards.

EUR/USD News

GBP/USD extends its falls to 1.2450 amid weak UK inflation, Brexit impasse

GBP/USD has dropped to around 1.2450 as UK headline CPI missed with 1.7% in August. Brexit negotiations remain stuck according to Chief EU negotiator Barnier. The Fed decision is eyed.

GBP/USD News

USD/JPY holds on to recovery gains above 108.00 ahead of Fed

Not only upbeat trade numbers from Japan but upbeat trade/political headlines also help the USD/JPY pair to remain firm around 108.20 prior to Wednesday’s European session. Focus on FOMC decision.

USD/JPY News

Gold: Pivots around $1500 mark, awaits FOMC policy update

Gold extended its sideways consolidative price action through the early European session on Wednesday and was seen pivoting around the key $1500 psychological mark, awaiting FOMC policy decision.

Gold News

Top 3 price prediction Bitcoin, Ripple, Ethereum: Cryptos seeing multiple launches into the universe

The Altcoin market has quickly confirmed Tuesday’s analysis with flashing rises in the last 24 hours. The two eternal aspirants to lead the crypto market – Ethereum and XRP – are rising sharply against Bitcoin and increasing its value rapidly.

Read more

Forex MAJORS

Cryptocurrencies

Signatures