27 Sep 2013
EUR/JPY strikes back after solid Italian data
FXstreet.com (Athens) – The ">EUR/JPY was trading heavily downwards since the opening of the Asian trading session – mostly due to super hawkish Fed’s Kansas George – but the last hour has regained an uptrend momentum.
EUR/JPY seems to get out of the woods after Fed’s George comments
The EUR/JPY was one of the most wounded crosses today, since the Japanese currency is outperforming today after Fed’s Kansas George was more than hawkish, thus sent “risk-appetite” trend to the trash can. What’s more Japanese currency has been outperforming today not only because “risk-appetite” hit again the “snooze” button but also on comments made by Japan’s Finance Minister Aso. Aso mentioned that he does not consider any kind of cut in corporate taxes, throwing a spanner in market’s optimism. In addition to, Aso rejected by far the comments on behalf of PM Abe yesterday, who clearly stated that there is a high probability of reducing the corporate tax speading “euphoria” all over the globe. Still after the release of solid Italian consumer confidence data, the single currency found the momentum to reverse most of its daily losses. Traders might also attribute the single currency boost to the general greenback weakness, as the Senate will today vote on a stop-gap spending bill.
Technical Outlook and Strategic Bias on EUR/JPY
Karen Jones, Head Technical Analyst at Commerzbank suggests that “EUR/JPY continues to consolidate recent gains. The intraday chart suggests that it should base at circa 132.42. Last week we saw the market climb into new highs for the year and the market also eroded the 2010 peak at 134.37. We look for further gains this week to 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.
Interim support is the 132.87 one month support line. Further support is seen at the 131.61 16th September low but an overall neutral to positive stance is entrenched above the 130.35 3 month uptrend.”
EUR/JPY seems to get out of the woods after Fed’s George comments
The EUR/JPY was one of the most wounded crosses today, since the Japanese currency is outperforming today after Fed’s Kansas George was more than hawkish, thus sent “risk-appetite” trend to the trash can. What’s more Japanese currency has been outperforming today not only because “risk-appetite” hit again the “snooze” button but also on comments made by Japan’s Finance Minister Aso. Aso mentioned that he does not consider any kind of cut in corporate taxes, throwing a spanner in market’s optimism. In addition to, Aso rejected by far the comments on behalf of PM Abe yesterday, who clearly stated that there is a high probability of reducing the corporate tax speading “euphoria” all over the globe. Still after the release of solid Italian consumer confidence data, the single currency found the momentum to reverse most of its daily losses. Traders might also attribute the single currency boost to the general greenback weakness, as the Senate will today vote on a stop-gap spending bill.
Technical Outlook and Strategic Bias on EUR/JPY
Karen Jones, Head Technical Analyst at Commerzbank suggests that “EUR/JPY continues to consolidate recent gains. The intraday chart suggests that it should base at circa 132.42. Last week we saw the market climb into new highs for the year and the market also eroded the 2010 peak at 134.37. We look for further gains this week to 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.
Interim support is the 132.87 one month support line. Further support is seen at the 131.61 16th September low but an overall neutral to positive stance is entrenched above the 130.35 3 month uptrend.”