Forex: EUR/JPY rallies to 200-day EMA
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EUR/JPY
FXstreet.com (Barcelona) - After last week's gains finding a high at 102.80, the EURJPY steadily came down to retrace them, printing a low at 100.15 today, where the 100-day EMA lies. However, the risk aversion on the surprise rating downgrade by S&P to Spain (BBB-) wore off quickly and the cross bounced all the way across the board, only stopping at the 200-day EMA, at 101.70.
The meetings of the G7 finance ministers and between Germany's Merkel and EU's Barroso are taking place and investors are looking for the headlines coming from there. The EURJPY is trading at 101.61 at the moment of writing, up by +1.17% on Thursday.
"The market is struggling to maintain upside pressure and the near term risk is shifting to the downside and in particular to the 99.50 September low. This is now exposed", wrote Commerzbank analyst Karen Jones, seeing the market vulnerable to further losses, and risk of even dropping towards 97.84 (61.8% retracement), while initial resistance is the 200 day moving average, at 101.79.
The meetings of the G7 finance ministers and between Germany's Merkel and EU's Barroso are taking place and investors are looking for the headlines coming from there. The EURJPY is trading at 101.61 at the moment of writing, up by +1.17% on Thursday.
"The market is struggling to maintain upside pressure and the near term risk is shifting to the downside and in particular to the 99.50 September low. This is now exposed", wrote Commerzbank analyst Karen Jones, seeing the market vulnerable to further losses, and risk of even dropping towards 97.84 (61.8% retracement), while initial resistance is the 200 day moving average, at 101.79.
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