Back
11 Mar 2015
EUR/JPY: Investors dumping the euro for the Yen
FXStreet (Guatemala) - EUR/JPY is currently trading at 128.56 with a high of 129.96 and a low of 128.18.
EUR/JPY is heavily on the offer since the end of lats year and the downside is being extended on the back of the ECB's full-on QE programme that kicked off this week, sending the euro lower towards the round 1.05 figure with the 30 year yields falling out of bed as the ECB and the national central banks are expected to continue purchases of government bonds in the amounts required until yields on the longest-dated bonds eligible fall below minus 0.2 per cent.
However, the ECB set a ceiling of minus 0.2 per cent last week, and said that they will be refusing to buy at yields lower than that or lower than the rate it charges the region’s lenders to leave their reserves on deposit with them, but that's not to say they couldn't revoke on this down the line, fuelling a flight to safety away from the right hand side of the cross.
Technically, we are at the 200 month ma and Fibonacci retracement at 128.12/52 (38.2% retracement of the move up from 2012), as noted by Karen Jones, chief analyst at Commerzbank and this could be an area of strong support.
EUR/JPY is heavily on the offer since the end of lats year and the downside is being extended on the back of the ECB's full-on QE programme that kicked off this week, sending the euro lower towards the round 1.05 figure with the 30 year yields falling out of bed as the ECB and the national central banks are expected to continue purchases of government bonds in the amounts required until yields on the longest-dated bonds eligible fall below minus 0.2 per cent.
However, the ECB set a ceiling of minus 0.2 per cent last week, and said that they will be refusing to buy at yields lower than that or lower than the rate it charges the region’s lenders to leave their reserves on deposit with them, but that's not to say they couldn't revoke on this down the line, fuelling a flight to safety away from the right hand side of the cross.
Technically, we are at the 200 month ma and Fibonacci retracement at 128.12/52 (38.2% retracement of the move up from 2012), as noted by Karen Jones, chief analyst at Commerzbank and this could be an area of strong support.