29 Jul 2013
EUR/JPY bounced off session lows after retail data and in front of Kuroda speech
FXstreet.com (Barcelona) - After slightly lower-than-expected retail trade data, the EUR/JPY rallied initially but is already giving much of that back ahead of the Bank of Japan’s Governor Kuroda’s speech later this morning.
Retail data out of Japan likely to take a back seat once Kuroda gets on the microphone
At 23:50 GMT Sunday night, the Japanese government told us that retail trade increased by 1.6% over the last month versus a consensus estimate of 1.9% and versus growth of 0.8% in the previous monthly release. The initial reaction to the news was to sell the Yen, ending the EUR/JPY higher. However, that reaction was quickly partially reversed after traders considered the relative wisdom of making heavy bets in front of Governor Kuroda’s speech later on Monday. The EUR/JPY is back to trading right where it gapped lower at the open on Sunday night at just above 130.23.
EUR/JPY technical overview
Tim Thielen, CMT and author of The Sea Change Report, has been calling for a correction lower in the EUR/JPY which he says should result more from Yen strength than euro weakness in the short-term. Thielen’s call is for EUR/JPY to eventually trade down to at least 127.50. Short-term support for EUR/JPY comes in at Friday’s low of 130.07 and is followed by additional support at the 7/10 low of 128.00. Short-term resistance comes in at horizontal line support of 130.88 and is backed up by last Wednesday’s high of 132.73.
Retail data out of Japan likely to take a back seat once Kuroda gets on the microphone
At 23:50 GMT Sunday night, the Japanese government told us that retail trade increased by 1.6% over the last month versus a consensus estimate of 1.9% and versus growth of 0.8% in the previous monthly release. The initial reaction to the news was to sell the Yen, ending the EUR/JPY higher. However, that reaction was quickly partially reversed after traders considered the relative wisdom of making heavy bets in front of Governor Kuroda’s speech later on Monday. The EUR/JPY is back to trading right where it gapped lower at the open on Sunday night at just above 130.23.
EUR/JPY technical overview
Tim Thielen, CMT and author of The Sea Change Report, has been calling for a correction lower in the EUR/JPY which he says should result more from Yen strength than euro weakness in the short-term. Thielen’s call is for EUR/JPY to eventually trade down to at least 127.50. Short-term support for EUR/JPY comes in at Friday’s low of 130.07 and is followed by additional support at the 7/10 low of 128.00. Short-term resistance comes in at horizontal line support of 130.88 and is backed up by last Wednesday’s high of 132.73.