Forex: EUR/JPY rally capped at 98.98
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EUR/JPY
FXstreet.com (Barcelona) - The European morning rally completed 100 pips gained, from 97.98 low to 98.98 high, and is now at a corrective stage, at 98.85, ahead of the New York opening. Comments from ECB's Coeure helped risk sentiment in the latest phase of the rally.
The central bank's official calls for joint budgetary control as a step towards euro bonds and that the ECB plans to intervene in the short term bond market. Meanwhile, ECB's Weidmann, strongly opposed to a bond buying plan, may be keeping the President Mario Draghi away from more ambitious action.
"EURJPY has not made much headway above the cloud resistance and we suspect that it will need to overcome the recent high at 99.16 to generate a move to 100+ and the 101.63 June high", wrote Commerzbank analyst Karen Jones.
The central bank's official calls for joint budgetary control as a step towards euro bonds and that the ECB plans to intervene in the short term bond market. Meanwhile, ECB's Weidmann, strongly opposed to a bond buying plan, may be keeping the President Mario Draghi away from more ambitious action.
"EURJPY has not made much headway above the cloud resistance and we suspect that it will need to overcome the recent high at 99.16 to generate a move to 100+ and the 101.63 June high", wrote Commerzbank analyst Karen Jones.
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