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EUR/JPY Forecast 26 Sep 2014

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EUR/JPY Chart 26 Sep 2014
3.7/5 of 3 ratings

The Euro is consolidating its recent losses against the Japanese yen

The EUR/JPY binary options forex pair has settled within a range today, as consolidate forces have engulfed the activity on the market and are bringing some additional pressure on both sides of the trade. We will be watching closely for a breakout outside in order to make our next move.

On the fundamental front, the Euro lost ground this week a some speculation about quantitative easing my the ECB has been cruising across the market. The rumor mill started as analysis from the Citi bank stated that the market is not appreciating the risks of the ECB printing more money by buying government bonds.

While there is nobody who expects the ECB to start buying sovereign government bonds with the creation of new money at it next meeting in the beginning of October, some analysts have voiced their opinion that they believe that December should trigger such a move on light of the slowing European economy.

While that may, or may not be the case, the current way of thinking of the market is that the euro could go as low as 1.19 to the US dollar. However this doesn't matter for the pair at which we are looking today - the Japanese central bank is likely to also be boosting the pace of money printing in the coming quarters.

We will be looking at the charts to determine our next move in this pair. If we see an hourly close above 139.95 today, we will buy a daily put, however be careful as the next level which is important for this market is just around the corner at 139.10.

On the other side, we would be looking for an hourly close below 138.40 in order to make our next move on this pair. Before we see the weekly close its difficult to say where is this pair going next week, however we would prefer to buy daily calls, so stay cautious on the downside for the next few hours, wait for a break of 138.40.

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