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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.
FOREX
- The sharp weakness for the single currency amid the well-known political concerns has been most noticeable for EURJPY on Friday, with the cross extending its post-BOJ reversal to around 1.3% in recent trade.
- Short-term bullish positioning following the BOJ decision, and the subsequent unwind, has helped exacerbate the most recent weakness for EURJPY, which is now trading at the lowest level since May 16. Lower core yields will likely be assisting the latest leg of Yen strength.
- Importantly, the cross has seen downside momentum pick up on a breach of trendline support, drawn from the Dec 7 ‘23 low and intersecting today at 167.92. The swift break has seen EURJPY trade quickly down to fresh lows of 167.53, notably piercing the 50-day EMA, at 167.63.
- A clear breach of both these supports would highlight a potential reversal of the bullish trend structure that has been in place. 167.33 is the next immediate target, before 165.64, the May 7 low. Key pivot support is found at 164.02, the May 3 low.
- Scheduled appearances from ECB’s Schnabel (1430BST) and Lagarde (1830BST) may attract interest, however, political developments over the weekend are likely to drive EUR price action.
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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