EUR/JPY re-visits session lows

FXStreet (Edinburgh) - The selling pressure is now mounting around the single currency, dragging EUR/JPY back to the red territory in the 132.30 area.

EUR/JPY lower on Draghi

Markets are reacting negatively to the press conference by President Mario Draghi, with the euro reverting the initial bullish attempt and prompting the cross to rapidly fade the spike to the vicinity of 133.60.

The ECB also presented its updated forecast for inflation and economic growth in the euro bloc. The council now expects consumer prices at 0.0% in the current year, 1.5% in 2016 and 1.8% in 2017; while the economy could expand 1.5% this year, 1.9% in 2016 and 2.1% during 2017.

EUR/JPY important levels

At the moment the cross is losing 0.12% at 132.41 and a breakdown of 132.00 (low Feb.2) would expose 131.17 (hourly low Jan.26). On the other hand, the initial hurdle lines up at 133.88 (high Mar.4) ahead of 134.06 (Tenkan Sen).

Core Inflation is still low – Draghi

The European Central Bank President responded to queries on inflation by stating that the core inflation would stay low and sees the output gap closing gradually by 2017.
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EUR/USD downside risk towards 1.0960 – FXStreet

Valeria Bednarik, Chief Analyst at FXStreet, comments that the EUR has failed to act towards Draghi’s hawkish view regarding the eurozone economy, with technicals now supporting a slide towards 1.0960 on a break below the key 1.1000 support.
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