3 Oct 2013
EUR/JPY soars as the single currency outperforms today
FXstreet.com (Athens) – The EUR/JPY is trading near 133.00 area again, after the slew of economic data this morning suggests that European growth is settling in at a modest pace.
EUR/JPY on the upper level as data support ECB neutral stance
The EUR/JPY has been trading consistently upwards on European trading session after the slew of European economic data released earlier suggests that growth in Euro land has become solid enough and most of all, is seems that growth has found equilibrium. Furthermore and maybe more importantly, the data on the whole seem to have been viewed by investors as highly positive for the single currency, as all the data fit in neatly with Draghi’s call yesterday from refraining from another LTRO, as the region attempts to find growth footing organically in the short-term. All in all, we could take for granted, that as long as data support ECB’s stance from refraining from LTRO, while also being cautious against another, euro might be well supported.
Technical Outlook on the EUR/JPY
Karen Jones, Head Technical Analyst at Commerzbank suggests that the “EUR/JPY has seen a strong rebound from the 55 day ma at 131.35 and remains under pinned by the 130.57/30 3 month uptrend. The intraday charts are suggesting intraday rebounds will struggle around current levels for another slide lower, however are giving conflicting signals and it is not clear.” We could add that traders should bear in mind that is very crucial if the pair manages today to have a clearly close above the 21-DMA as of 132.62 (also yesterday’s high), which would give further uptrend momentum to the pair – all other equal – to move closer to the crucial, psychological level as of 133.00 area.
EUR/JPY on the upper level as data support ECB neutral stance
The EUR/JPY has been trading consistently upwards on European trading session after the slew of European economic data released earlier suggests that growth in Euro land has become solid enough and most of all, is seems that growth has found equilibrium. Furthermore and maybe more importantly, the data on the whole seem to have been viewed by investors as highly positive for the single currency, as all the data fit in neatly with Draghi’s call yesterday from refraining from another LTRO, as the region attempts to find growth footing organically in the short-term. All in all, we could take for granted, that as long as data support ECB’s stance from refraining from LTRO, while also being cautious against another, euro might be well supported.
Technical Outlook on the EUR/JPY
Karen Jones, Head Technical Analyst at Commerzbank suggests that the “EUR/JPY has seen a strong rebound from the 55 day ma at 131.35 and remains under pinned by the 130.57/30 3 month uptrend. The intraday charts are suggesting intraday rebounds will struggle around current levels for another slide lower, however are giving conflicting signals and it is not clear.” We could add that traders should bear in mind that is very crucial if the pair manages today to have a clearly close above the 21-DMA as of 132.62 (also yesterday’s high), which would give further uptrend momentum to the pair – all other equal – to move closer to the crucial, psychological level as of 133.00 area.