23 Oct 2013
EUR/JPY tumbles on a corrective pullback
FXstreet.com (Athens) – The EUR/JPY has been trading consistently downwards since the kick off of the Asian trading session, as the Nikkei index falling by 0.7%
EUR/JPY retraces all its post – NFP gains; Nikkei down 0.7%
While the Asian markets crept higher since the kick off of the early Wellington trading session – with Nikkei gaining roughly 0.24%, the cross pared almost of its yesterday’s gains. The cross is now hovering well below the 135.00 level ahead of today’s critical Euro land consumer confidence data and the last hour is getting under more pressure as the Nikkei fell abruptly from +0.24% to -0.7%. As it is widely known there is a heavy negative correlation between the Nikkei and the Japanese currency, thus, it is widely anticipated that the cross might move further downwards. Last but not least, the EUR/JPY printed new fresh monthly highs yesterday after the release of the dismal NFP data, suggesting that the notorious tapering might be “later” than “sooner”, perhaps even deeper in 2014.
Technical Aspects on the EUR/JPY
Karen Jones Head Technical Analyst of Commerzbank, mentions that the “EUR/JPY has eroded the May peak at 133.82 and attention has reverted to the 134.95 September high and the 135.15 2013 resistance line. Currently the 240 minute chart is suggesting intraday dips will hold in the 133.60/15 band prior to another upside attempt .Support just below here lies at the August high at 132.42 and the early September high at 132.14. Still further down sits the 55 day moving average at 131.85 and the October low at 131.15.”
EUR/JPY retraces all its post – NFP gains; Nikkei down 0.7%
While the Asian markets crept higher since the kick off of the early Wellington trading session – with Nikkei gaining roughly 0.24%, the cross pared almost of its yesterday’s gains. The cross is now hovering well below the 135.00 level ahead of today’s critical Euro land consumer confidence data and the last hour is getting under more pressure as the Nikkei fell abruptly from +0.24% to -0.7%. As it is widely known there is a heavy negative correlation between the Nikkei and the Japanese currency, thus, it is widely anticipated that the cross might move further downwards. Last but not least, the EUR/JPY printed new fresh monthly highs yesterday after the release of the dismal NFP data, suggesting that the notorious tapering might be “later” than “sooner”, perhaps even deeper in 2014.
Technical Aspects on the EUR/JPY
Karen Jones Head Technical Analyst of Commerzbank, mentions that the “EUR/JPY has eroded the May peak at 133.82 and attention has reverted to the 134.95 September high and the 135.15 2013 resistance line. Currently the 240 minute chart is suggesting intraday dips will hold in the 133.60/15 band prior to another upside attempt .Support just below here lies at the August high at 132.42 and the early September high at 132.14. Still further down sits the 55 day moving average at 131.85 and the October low at 131.15.”