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Technical analysis of EUR/JPY for August 12, 2015

Minutes of the Bank of Japan Monetary Policy Meeting from July 14-15, 2015 is due today which will coincide with the Asian session. Many members expect Japan's inflation dynamic is set to improve. Besides, the minutes read that the Bank of Japan will continue to pursue the loose monetary policy until an inflation rate remains steady at 2%.

According to the minutes, the Bank of Japan will assess risks and adjust policies when necessary.

BoJ members share the view that CPI may rise, consistent with the April outlook. One member said, CPI will approach the target level of 2% by the end of 2016 fiscal year. However, few members think that a monetary easing effect of lower real interest rates is waning. Three members expressed a cautious view on the inflation outlook. One official said he is uncertain whether revenue growth will increase spending.

The cross managed to close and traded above all the moving averages in the different time intervals. The 20Wsma is set at 135.00. The cross has been forming a head and shoulder pattern, a neckline is seen at 133.09. The trend changing level is found at 133.00 rounded, buyers' stop loss might be here.

On the higher side, multiple resistance seems at 141.00.

On the hourly and four-hour chart the oscillators are indicating overbought levels. Intraday resistance seems at 138.40,138.70, and 139.40. At present, a high has been reached at 138.36. Support is set at 137.90, 137.50, and 137.20. We advised fresh buying only above 138.40.

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