Intraday Market Thoughts

EURJPY Revaluated Ahead of ECB

by Ashraf Laidi
Mar 4, 2014 19:59

Markets approach Thursday's ECB meeting as the first meeting in a few months when speculation of an “imminent” rate cut is out of the way following Friday's higher than expected CPI figures. But does this mean that a Thursday rally in the euro is a higher certainty event? Would that mean further gains for EURUSD, or EURJPY? What about the risk of a stronger than expected US jobs number on Friday dragging the euro. Or how about resurfacing volatility from Ukraine-Russia weighing on yen crosses? There are 2 existing longs in EURUSD in our Premium Insights. But what about EURJPY? The pair has consolidated between its 55 and 100-DMAs in a 30-pt consolidation as bond yields have returned to 4-week lows before bouncing off yesterday's 200 DMA. Does EURJPY present a bullish opportunity ahead of the ECB with the anticipation of further run-up in risk appetite? Or, is ready to dissipate near the 55-DMA as it has done on Feb 21st and Jan 29?

2 trades and 3 charts have been added to today's Premium Insights, with existing trades on EURUSD, USDJPY, GBPUSD, AUDUSD, USDCAD, AUDNZD and AUDCAD. The trades can be accessed at the “Trades” section under “Premium Intermarket Insights”, while the charts are found in the “Latest Entry”.

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