3 Jul 2013
EUR/JPY drops 180 pips before support
FXstreet.com (London) - EUR/JPY has fallen from 130.80 to 130.00 to find 5 minutes worth of support before falling a further 100 pips.
Strong support and bids were located at 129.00 and EUR/JPY has walked back to 129.50. Markit Services for the nations Italy, Germany were printing in the red, while the lesser of nations in focus as France and Spain were slightly higher. The EZ data in Markit Services PMI and Markit PMI composite were both in the red. Overall, this data will be adding fuel to sentiment around a dovish ECB on Thursday.
EUR/JPY sights for 125.00/124.45
Research teams at Commerzbank said as long as 131.30 caps, there is a risk of a slide back to the 125.00/124.45 band of support (mid-April low and the 23.6% retracement of the entire move up from the July 2012 low). “This is a key band of support and 124.45 is considered to be the break down point to 118.82/65, the February and April lows and the 38.2% retracement of the same move,” said Karen Jones, analyst at the bank. Her team notes above 131.30 will abort the foregoing and suggest a retest of the 133.82 May high.
Strong support and bids were located at 129.00 and EUR/JPY has walked back to 129.50. Markit Services for the nations Italy, Germany were printing in the red, while the lesser of nations in focus as France and Spain were slightly higher. The EZ data in Markit Services PMI and Markit PMI composite were both in the red. Overall, this data will be adding fuel to sentiment around a dovish ECB on Thursday.
EUR/JPY sights for 125.00/124.45
Research teams at Commerzbank said as long as 131.30 caps, there is a risk of a slide back to the 125.00/124.45 band of support (mid-April low and the 23.6% retracement of the entire move up from the July 2012 low). “This is a key band of support and 124.45 is considered to be the break down point to 118.82/65, the February and April lows and the 38.2% retracement of the same move,” said Karen Jones, analyst at the bank. Her team notes above 131.30 will abort the foregoing and suggest a retest of the 133.82 May high.