2 Sep 2013
EUR/JPY holds on to 131.00
FXstreet.com (Chicago) - EUR/JPY exhausted bullish rally at 131.37 after heavy buying in the morning of Asia’s trading session. Market participants pushed the pair high in part due to the decline of risk aversion mentality among investors after the Syrian conflict seemed to have eased down.
Bullish momentum?
Markit manufacturing data due in Europe outperformed expectations at 51.4 vs. projected 51.3 and prior 50.3. The data came in positive for all countries (Spain, Italy, France and Greece) but Germany where the Markit Manufacturing PMI was 51.8 vs. expected 52.0. In Japan, capital spending was flat versus expected -2.0% and previous -3.9%. The Nikkei 225 closed with gains at 1.37% while in Europe the CAC 40 was up 1.84%, the DAX stronger 1.74% and the Euronext up 1.66%.
EUR/JPY Technical Levels
Price action reveals a 23.6% (Fibonacci retracement) from 131.37 (session highs) on rally that started last August 30th. Trading at 131.04, the pair navigates between supports at 130.80 (August 19th highs), 130.56 (August 28th highs) ahead of 130.29 (August 29th highs) and resistances at 131.37 (session highs), 131.65 (August 21st highs) followed by 131.96 (August 27th highs). According to the FXstreet.com trend index, the pair is neutral on one-hour timeframe analysis and is offered above the EMA20.
Bullish momentum?
Markit manufacturing data due in Europe outperformed expectations at 51.4 vs. projected 51.3 and prior 50.3. The data came in positive for all countries (Spain, Italy, France and Greece) but Germany where the Markit Manufacturing PMI was 51.8 vs. expected 52.0. In Japan, capital spending was flat versus expected -2.0% and previous -3.9%. The Nikkei 225 closed with gains at 1.37% while in Europe the CAC 40 was up 1.84%, the DAX stronger 1.74% and the Euronext up 1.66%.
EUR/JPY Technical Levels
Price action reveals a 23.6% (Fibonacci retracement) from 131.37 (session highs) on rally that started last August 30th. Trading at 131.04, the pair navigates between supports at 130.80 (August 19th highs), 130.56 (August 28th highs) ahead of 130.29 (August 29th highs) and resistances at 131.37 (session highs), 131.65 (August 21st highs) followed by 131.96 (August 27th highs). According to the FXstreet.com trend index, the pair is neutral on one-hour timeframe analysis and is offered above the EMA20.