22 Oct 2013
EUR/JPY at one month high ahead of NFP
FXstreet.com (Athens) – The EUR/JPY is trading steadily upwards, after having already printed new monthly fresh highs, inspired by a slight bid on USD/JPY and a really muted EUR/USD.
EUR/JPY prints monthly highs; major drivers JPY weakness, steady EUR/USD
Fortunately ahead of NFP, there is a cross that offers market participants a little light amidst a muted financial environment; briefly, the EUR/JPY printed new monthly highs and moves closer to the psychological area as of 135.00 amidst a slumber pre-NFP environment. The Japanese weakness might be attributed to the slight Nikkei gains but also to slight bid tone to the USD/JPY. Last but not least, “Abenomics” do not seem to be on a solid track as it have been the previous months; Monday’s data revealed that Japanese inflation is bound to fail without the necessary increase in wages as it is obvious that consumers can't handle the pressure on their disposable income.
Technical Perspective 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 prints monthly highs; major drivers JPY weakness, steady EUR/USD
Fortunately ahead of NFP, there is a cross that offers market participants a little light amidst a muted financial environment; briefly, the EUR/JPY printed new monthly highs and moves closer to the psychological area as of 135.00 amidst a slumber pre-NFP environment. The Japanese weakness might be attributed to the slight Nikkei gains but also to slight bid tone to the USD/JPY. Last but not least, “Abenomics” do not seem to be on a solid track as it have been the previous months; Monday’s data revealed that Japanese inflation is bound to fail without the necessary increase in wages as it is obvious that consumers can't handle the pressure on their disposable income.
Technical Perspective 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.”