Back
4 Oct 2013
EUR/JPY reflecting “risk off” mood but also may be hinting at a big move soon to come
FXstreet.com (Barcelona) - The non-action by the Bank of Japan had little net effect on the EUR/JPY cross – continuing the trend of the last several sessions of major intraday swings with only minor close-to-close price swings.
EUR/JPY moving sideways could be a lead-in to a big move
Both the euro and the Yen have been strong of late – so sideways movement in the cross is understandable. From a “risk tell” perspective, the EUR/JPY is telling a story of “risk-off” right now. However, the fact the cross is not cascading lower reflects a knowledge by the bears that there iscvery real potential for an upside explosion once the Washington fighting resolves itself.
Technical outlook for EUR/JPY
Technicians point out that the EUR/JPY bulls will keep the chart in their favor if they can keep the cross from closing below the 8/23 close of 132.05. A close below that level will likely lead to a move below 131 in fairly short order. Resistance comes in at 132.69 – the 9/24 low.
EUR/JPY moving sideways could be a lead-in to a big move
Both the euro and the Yen have been strong of late – so sideways movement in the cross is understandable. From a “risk tell” perspective, the EUR/JPY is telling a story of “risk-off” right now. However, the fact the cross is not cascading lower reflects a knowledge by the bears that there iscvery real potential for an upside explosion once the Washington fighting resolves itself.
Technical outlook for EUR/JPY
Technicians point out that the EUR/JPY bulls will keep the chart in their favor if they can keep the cross from closing below the 8/23 close of 132.05. A close below that level will likely lead to a move below 131 in fairly short order. Resistance comes in at 132.69 – the 9/24 low.