10 Jun 2013
EUR/JPY edging higher ahead of Japan GDP figures
FXstreet.com (Barcelona) - The EUR/JPY is edging higher in Asia trade, up 57 pips at 1.2970. Market participants should be aware of the Japan GDP figures due out a bit later tonight at 23:50GMT.
Some analysts were pointing towards the possibility for stops being tripped as a reason behind the sharp move higher to start the week. “No surprise to see plenty of trailing stops above 129.00 and 129.50 and they have all been triggered in typical early morning Monday trade,” noted Sean Lee of FXWW. Although the pair is starting the week off on a strong note, Lee is viewing it as an opportunity to get short at higher levels. “I’m still looking to sell any rallies towards 131.00,” Lee concluded.
The FXstreet.com Trend Index remains in strongly bearish set up on the weekly chart, while the ob/os index reads neutral. Short term moving averages on the daily chart remain in slightly bearish set up, with price consolidating just below the 9 and 20 dma’s. It should be noted the RSI (14) came down and held the 40 level last week which means the bullish zone between 40 and 80 is still intact. Initial resistance sits at 130.15 (the 9dma), while first support sits at 129.49 (the 50dma).
Some analysts were pointing towards the possibility for stops being tripped as a reason behind the sharp move higher to start the week. “No surprise to see plenty of trailing stops above 129.00 and 129.50 and they have all been triggered in typical early morning Monday trade,” noted Sean Lee of FXWW. Although the pair is starting the week off on a strong note, Lee is viewing it as an opportunity to get short at higher levels. “I’m still looking to sell any rallies towards 131.00,” Lee concluded.
The FXstreet.com Trend Index remains in strongly bearish set up on the weekly chart, while the ob/os index reads neutral. Short term moving averages on the daily chart remain in slightly bearish set up, with price consolidating just below the 9 and 20 dma’s. It should be noted the RSI (14) came down and held the 40 level last week which means the bullish zone between 40 and 80 is still intact. Initial resistance sits at 130.15 (the 9dma), while first support sits at 129.49 (the 50dma).