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17 Sep 2013
EUR/JPY sees no change after solid EZ data
FXstreet.com (Athens)- The EUR/JPY is trading upwards since the opening of the Asian trading day, hovering round at its daily highs.
Will the EUR/JPY retest its recent falling trend line as of 131.90 area if ZEW let down traders?
The EUR/JPY did move almost 5 pips to the solid Euro land data released a couple of minutes earlier. While the current account surplus regarding the Euro zone increased significantly, the pair moved at the opposite side, losing around 5 pips on the announcement. Investors should look behind the curtains to see if there is any opportunity ahead of today’s data. The only data that can impact the pair importantly-but only if would release notably out of line with expectations -is the ZEW German indicator. Thus, because ZEW quite often gives false signals, traders should take into deep consideration the announcement release. Finally, The yen is likely to weaken further as the global economical backdrop accelerates in 2014 with a synchronized economic recovery already underway in the euro-zone, UK, the US, Japan, and China.
Technical Outlook and Strategic Bias on EUR/JPY
According to Karen Jones, Head Technical Analyst of Commerzbank, “EUR/JPY has stalled at 133.37 and the divergence of the daily RSI suggests we should allow for some near term consolidation back to approximately 131.65-131.10. We are a little concerned by the price action, but will maintain an overall neutral to positive stance while above 130.67 (55 day ma) and the 129.77 3 month ma. It targets the 133.82 May high in the first instance and above it lies the 2010 peak at 134.37. Still further up sits major resistance at 137.42/139.26 where the April, May, August and October 2009 highs were all made. The triangle measures up to 141.05.”
Will the EUR/JPY retest its recent falling trend line as of 131.90 area if ZEW let down traders?
The EUR/JPY did move almost 5 pips to the solid Euro land data released a couple of minutes earlier. While the current account surplus regarding the Euro zone increased significantly, the pair moved at the opposite side, losing around 5 pips on the announcement. Investors should look behind the curtains to see if there is any opportunity ahead of today’s data. The only data that can impact the pair importantly-but only if would release notably out of line with expectations -is the ZEW German indicator. Thus, because ZEW quite often gives false signals, traders should take into deep consideration the announcement release. Finally, The yen is likely to weaken further as the global economical backdrop accelerates in 2014 with a synchronized economic recovery already underway in the euro-zone, UK, the US, Japan, and China.
Technical Outlook and Strategic Bias on EUR/JPY
According to Karen Jones, Head Technical Analyst of Commerzbank, “EUR/JPY has stalled at 133.37 and the divergence of the daily RSI suggests we should allow for some near term consolidation back to approximately 131.65-131.10. We are a little concerned by the price action, but will maintain an overall neutral to positive stance while above 130.67 (55 day ma) and the 129.77 3 month ma. It targets the 133.82 May high in the first instance and above it lies the 2010 peak at 134.37. Still further up sits major resistance at 137.42/139.26 where the April, May, August and October 2009 highs were all made. The triangle measures up to 141.05.”