4 Nov 2013
EUR/JPY capped by 133.70
FXstreet.com (Athens) – While the EUR/JPY is bolstered on Monday as risk-on appetite strikes back, still the cross can’t help to overcome decently the 133.70 area.
The EUR/JPY is steadily heading north during the last couple of hours in European trading session, partly inspired by the encouraging released data pertaining to Euro zone’s Manufacturing PMI, Sentix Investor Confidence but mostly, due to the risk-on appetite. Traders might attribute the fact that risk on appetite returned across the board, mostly to the upbeat Chinese PMI data released on weekend, as long as to the solid Australian retail sales released overnight.
Technical Aspects on the EUR/JPY
The EUR/JPY seems to show an uptrend momentum on Monday, but still is well capped by the 133.70, where a confluence of major resistances are laying. Briefly, there is the daily-EMA (133.69) laying in that area, as well as the 38.2% Fibonacci retracement of the 135.45-132.60. Karen Jones Head Technical Analyst of Commerzbank suggests that “EUR/JPY sold off last week from its very long term retracement at 135.33 (23.6% retracement of the move down from the 1979 high) and tested the 55 day ma at 132.53, which held the initial test.We regard the pattern on the market as a potential rising wedge (reversal pattern) and a weekly close below the 132.01 level should be enough to complete the pattern and introduce scope to 122.80.”
The EUR/JPY is steadily heading north during the last couple of hours in European trading session, partly inspired by the encouraging released data pertaining to Euro zone’s Manufacturing PMI, Sentix Investor Confidence but mostly, due to the risk-on appetite. Traders might attribute the fact that risk on appetite returned across the board, mostly to the upbeat Chinese PMI data released on weekend, as long as to the solid Australian retail sales released overnight.
Technical Aspects on the EUR/JPY
The EUR/JPY seems to show an uptrend momentum on Monday, but still is well capped by the 133.70, where a confluence of major resistances are laying. Briefly, there is the daily-EMA (133.69) laying in that area, as well as the 38.2% Fibonacci retracement of the 135.45-132.60. Karen Jones Head Technical Analyst of Commerzbank suggests that “EUR/JPY sold off last week from its very long term retracement at 135.33 (23.6% retracement of the move down from the 1979 high) and tested the 55 day ma at 132.53, which held the initial test.We regard the pattern on the market as a potential rising wedge (reversal pattern) and a weekly close below the 132.01 level should be enough to complete the pattern and introduce scope to 122.80.”