EUR/JPY – Can it Find A Bid?

EUR/JPY – Can it Find A Bid?

Chart Of The Day

For more than a year the trend in EUR/JPY has been indisputably downward. The pair made a few half hearted attempts to rally, but only managed to set a series of lower highs keeping the downtrend in place.

The drive lower has been driven both by the weakness in USD/JPY and the weakness in the euro and mirrors the unsettled price action in equities. However after having made a spike low March the pair appears to be climbing higher slowly but surely as each new low lower is higher than than last.

Tomorrow’s FOMC meeting could be key to any near term price action. If the Fed strikes a hawkish tone any weakness in the euro is likely to be more than offset by the strength in USD/JPY and the pair could be back on its way towards 128.00

Where Will USD/JPY Find Support?

Where Will USD/JPY Find Support?

Chart Of The Day

USD/JPY is down nearly three big figures this week as the disappointment regarding Fed rate hike delay and the massive selloff in stocks has created a one two punch on the pair. The key question now is where is support?

The pair likely will find some bids against the 121.50 level and certainly well ahead of the key 120.00 level. Next week the market will get a look at US GDP figures which are expected to be rise to 3.2% which may boost investor enthusiasm and stem the selloff. For now the pair appears to have stabilized ahead of the 121.50 level and unless the selling in equities continues it may finally find support.