25 Sep 2013
EUR/JPY getting closer to short-term 132.56 support as “risk off” mood permeates
FXstreet.com (Barcelona) - EUR/JPY is trading just above Fibonacci support at 132.56 after a third straight day of selling.
EUR/JPY still signaling short-term “risk off” condition – but for how long
The EUR/JPY continues to be weighed down by managers shorting it as a hedge against other risk longs in their portfolios. In addition to that general pressure, the euro saw some weakness Tuesday on slightly disappointing German data.
The action Wednesday is likely going to continue to be driven by the world’s appetite for risk assets – but traders will be monitoring the German Consumer Confidence and Import Price data as well.
Technical outlook for EUR/JPY
Technicians say EURJPY broke below the first of two Fibonacci support levels at 133.33 and is now likely to eventually make it down to 132.56 before this correction has run its course. The obvious resistance for the cross comes in at last Thursday’s high at 134.94, but technicians say the next up move should take the cross to 136.50.
EUR/JPY still signaling short-term “risk off” condition – but for how long
The EUR/JPY continues to be weighed down by managers shorting it as a hedge against other risk longs in their portfolios. In addition to that general pressure, the euro saw some weakness Tuesday on slightly disappointing German data.
The action Wednesday is likely going to continue to be driven by the world’s appetite for risk assets – but traders will be monitoring the German Consumer Confidence and Import Price data as well.
Technical outlook for EUR/JPY
Technicians say EURJPY broke below the first of two Fibonacci support levels at 133.33 and is now likely to eventually make it down to 132.56 before this correction has run its course. The obvious resistance for the cross comes in at last Thursday’s high at 134.94, but technicians say the next up move should take the cross to 136.50.