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31 Mar 2014
EUR/JPY has rocketed above 142.00 resistance despite weaker than expected EZ CPI
FXStreet (Moscow) - EUR/JPY experienced a big splash of volatility after the EX inflation report. The cross recovered from the initial fall to 141.50 and broke above 142.00 resistance; bulls are still in control.
EZ CPI proved to be a tricky thing to trade on
EUR/JPY was growing steadily following the dovish comments from the Head of BOJ, but EZ inflation numbers added excitement to the cross movements as the flash CPI came out lower than expected at 0.5% y/y in March against forecasted 0.6% and 0.7% in February. EUR/JPY dropped from 141.95 to the support level of 141.50, absorbed stops, wound EUR bears around its little finger and rocketed to new intraday highs. Obviously, after having the second thought, investors decided that this is not enough to get the ECB moving towards unconventional monetary policy. Now that the key resistance of 142/00 is broken, the technical factors will come into play and accelerate the upside to the next important level of 142.50
What are today’s key EUR/JPY levels?
Today's central pivot point can be found at 141.01, with support below at 140.34, 139.29 and 138.62, with resistance above at 142.06, 142.73, and 143.78. Hourly Moving Averages are bullish, with the 200SMA at 141.11 and the daily 20EMA at 141.17. Hourly RSI is neutral at 60.
EZ CPI proved to be a tricky thing to trade on
EUR/JPY was growing steadily following the dovish comments from the Head of BOJ, but EZ inflation numbers added excitement to the cross movements as the flash CPI came out lower than expected at 0.5% y/y in March against forecasted 0.6% and 0.7% in February. EUR/JPY dropped from 141.95 to the support level of 141.50, absorbed stops, wound EUR bears around its little finger and rocketed to new intraday highs. Obviously, after having the second thought, investors decided that this is not enough to get the ECB moving towards unconventional monetary policy. Now that the key resistance of 142/00 is broken, the technical factors will come into play and accelerate the upside to the next important level of 142.50
What are today’s key EUR/JPY levels?
Today's central pivot point can be found at 141.01, with support below at 140.34, 139.29 and 138.62, with resistance above at 142.06, 142.73, and 143.78. Hourly Moving Averages are bullish, with the 200SMA at 141.11 and the daily 20EMA at 141.17. Hourly RSI is neutral at 60.