15 Oct 2013
EUR/JPY seems to run out of steam
FXstreet.com (Athens) – The EUR/JPY is heading downwards today since the kick off of the early Asian trading session as it lacks the fuel to continue moving on the upper level after 5 consecutive “green” days.
EUR/JPY loses momentum after 5 straight positive gains
The EUR/JPY is moving downwards the last couple of hours despite its boosting upwards trend in the very early opening trading session. Elaborating on, the cross was mainly boosted in the kick off of the Asian trading session due to the fact that Nikkei was steadily above 14.500 and on market optimism that a deal in Washington is closer than ever before. Precisely, Senator Mitch McConnell said through news wires that "substantial progress was made in Senate discussion - a uniform optimistic view with his Democrat counterpart.” However afterwards, Nikkei retreated coming well back 14.500, Japanese data regarding industrial production released at poor levels and the cross lost approximately 40 pips (from 133.82 spiked down to 133.44).
Technical Outlook on EUR/JPY
Karen Jones, Head Technical Analyst at Commerzbank suggests that the “EUR/JPY’s s recent advance has taken it to the May peak at 133.82. Another potential upside target is the September high at 134.95. We expect the current rally to run out of steam before reaching the latter level, though. Slips should find support around the 132.42 August high. Only a, for now, unexpected fall below the 131.15 current October low will trigger losses to 127.97 August low.”
EUR/JPY loses momentum after 5 straight positive gains
The EUR/JPY is moving downwards the last couple of hours despite its boosting upwards trend in the very early opening trading session. Elaborating on, the cross was mainly boosted in the kick off of the Asian trading session due to the fact that Nikkei was steadily above 14.500 and on market optimism that a deal in Washington is closer than ever before. Precisely, Senator Mitch McConnell said through news wires that "substantial progress was made in Senate discussion - a uniform optimistic view with his Democrat counterpart.” However afterwards, Nikkei retreated coming well back 14.500, Japanese data regarding industrial production released at poor levels and the cross lost approximately 40 pips (from 133.82 spiked down to 133.44).
Technical Outlook on EUR/JPY
Karen Jones, Head Technical Analyst at Commerzbank suggests that the “EUR/JPY’s s recent advance has taken it to the May peak at 133.82. Another potential upside target is the September high at 134.95. We expect the current rally to run out of steam before reaching the latter level, though. Slips should find support around the 132.42 August high. Only a, for now, unexpected fall below the 131.15 current October low will trigger losses to 127.97 August low.”