Forex: EUR/JPY rallies on Fitch downgrade warning
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EUR/JPY
FXstreet.com (Barcelona) - A surge of Yen weakness triggered a EURJPY rally that broke through the 114.50 that was limiting further upside since late Asian session. The cross has gone to as far as 114.72 high, for now.
While investors price in expectations regarding any hint from Draghi in tomorrow's ECB meeting, also eyeing tomorrow's China trade data, the market is also digesting today's Reuters report admitting a potential announcement of a 2% inflation target and a pledge of more easing steps at the 21-22 BoJ meeting.
Meanwhile, Fitch rating agency threatened that sovereign downgrade to Japan will be considered unless action is taken to address the public debt situation: "This was no surprise given the existing negative outlook, but the remarks balance recent hopes that the Abe-administration's reflationary policy could actually be rating-supportive", wrote UBS analyst Gareth Berry.
Mataf.net analysts point to resistances at 114.90 and 115.20, while supports might be found at 114.20, 113.50 and 113.05.
While investors price in expectations regarding any hint from Draghi in tomorrow's ECB meeting, also eyeing tomorrow's China trade data, the market is also digesting today's Reuters report admitting a potential announcement of a 2% inflation target and a pledge of more easing steps at the 21-22 BoJ meeting.
Meanwhile, Fitch rating agency threatened that sovereign downgrade to Japan will be considered unless action is taken to address the public debt situation: "This was no surprise given the existing negative outlook, but the remarks balance recent hopes that the Abe-administration's reflationary policy could actually be rating-supportive", wrote UBS analyst Gareth Berry.
Mataf.net analysts point to resistances at 114.90 and 115.20, while supports might be found at 114.20, 113.50 and 113.05.
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