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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
EURJPY
- While US CPI has proved no game changer for the USD, markets have looked to EUR/JPY for signs of a more significant technical break, as the cross tops congestion resistance layered between Y158.00-05.
- This puts prices at the best levels since August 2008. Historical and horizontal resistance ahead looks sparse, and the 14-day RSI is yet to exhibit overbought conditions - meaning the cross is showing few signs of running out of steam. Nonetheless, focus may turn to the 159.29 uptrendline resistance drawn off the June 2020 high for direction.
- The further slide in the JPY will raise focus on the potential for further JPY intervention. While USD/JPY is yet to reach the levels at which the BoJ/FSA/MoF last intervened, most trade-weighted JPY measures are nearing the year's lowest levels thanks to the rally in GBP/JPY and EUR/JPY today.
- Kanda, Japan's currency official, last stated the MoF would consider all options on "excessive" currency moves on July 21st. Trade-weighted JPY as fallen close to 2.5% since.
Figure 1: EUR/JPY Nearing Uptrendline Resistance
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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