EUR/JPY falls to test support
Forex pairs in this Article »
EUR/JPY
FXstreet.com (Córdoba) - The euro weakened on Wednesday weighed by grim economic data ahead of the ECB policy decision on Thursday.
EURJPY dropped to a low of 100.21 during the Asian session and even though it managed to bounce, the recovery was capped by the 20-hour SMA at the 100.50 zone. The cross has been quoting in a tight range ever since and at time of writing it is trading at 100.25, down 0.3% on the day.
"EURJPY had to contend with a wave of selling as investors braced for the possibility of some yen-positive repatriation", said Gareth Berry, analyst at UBS. "A EUR 27 bn Bund matures today, and attention has focused on the lack of euro-based re-investment opportunities for investors who prefer to stay in AAA-rated debt".
In terms of technical levels, immediate supports could be found at 100.20, 100.00 and 99.75, while resistances are seen at 100.50, 100.80 and 101.00.
EURJPY dropped to a low of 100.21 during the Asian session and even though it managed to bounce, the recovery was capped by the 20-hour SMA at the 100.50 zone. The cross has been quoting in a tight range ever since and at time of writing it is trading at 100.25, down 0.3% on the day.
"EURJPY had to contend with a wave of selling as investors braced for the possibility of some yen-positive repatriation", said Gareth Berry, analyst at UBS. "A EUR 27 bn Bund matures today, and attention has focused on the lack of euro-based re-investment opportunities for investors who prefer to stay in AAA-rated debt".
In terms of technical levels, immediate supports could be found at 100.20, 100.00 and 99.75, while resistances are seen at 100.50, 100.80 and 101.00.
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