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8 Aug 2014
EUR/JPY under pressure, en-route to 136.00
FXStreet (Bali) - EUR/JPY is sliding towards 136.00 round number in the early Tokyo session, with the nikkei 225 down 1.53% not helping the case for a bounce post a dovish ECB.
While speculation that the GPIF may allocate over 20% of its share to domestic equity from 12% produced a late bounce in Tokyo on Thursday, today, pressures in the index are returning, with traders playing a 'risk-off' Friday, tracking decline in European indexes and Wall Street, also weighed by geopolitical risks out of Ukraine-Russian conflict.
Technically, Valeria Bednarik, Chief Analyst at FXStreet, notes: "The hourly chart shows 100 SMA crossing below 200 one both well above current price, with indicators turning flat in oversold territory, far however from suggesting an upward correction. In the 4 hours chart indicators gain bearish slope after a partial correction from oversold levels, pointing for fresh lows before the week is over."
While speculation that the GPIF may allocate over 20% of its share to domestic equity from 12% produced a late bounce in Tokyo on Thursday, today, pressures in the index are returning, with traders playing a 'risk-off' Friday, tracking decline in European indexes and Wall Street, also weighed by geopolitical risks out of Ukraine-Russian conflict.
Technically, Valeria Bednarik, Chief Analyst at FXStreet, notes: "The hourly chart shows 100 SMA crossing below 200 one both well above current price, with indicators turning flat in oversold territory, far however from suggesting an upward correction. In the 4 hours chart indicators gain bearish slope after a partial correction from oversold levels, pointing for fresh lows before the week is over."