11 Oct 2013
EUR/JPY soars as demand for safe haven wanes
FXstreet.com (Athens) – The EUR/JPY has been trading higher since the early kick off of the Asian trading session as news wires all over the globe, mention rumors saying that the US lawmakers pushing debt ceiling limit to Nov 22 from Oct 17, thus diminishing demand for safe haven Japanese currency.
EUR/JPY climbing higher and higher for a fourth consecutive day
The EUR/JPY has been trading consistently higher since the early Asian opening trading session, due to the fact that risk sentiment hit the “on” button, after a down-to-the-wire agreement between House Republicans and President Obama sent the S&P 500 to its biggest single day rally since January 2 and convinced market participants to damp their safe haven assets. On the other hand, traders should be not in any case relaxed. Elaborating on, traders should not get laid back on the fact that risk appetite is again on the backdrop since, Draghi alongside with the other ECB members has clearly stated his intention to maintain loose policy along with concerns for any serious rise in market rates that could choke off budding economic recovery. Precisely, Draghi, who is in the U.S. to attend the annual meetings of the International Monetary Fund and the World Bank, mentioned yesterday at the Economic Club of New York that “policy makers’ pledge to keep interest rates low explicitly allows for cuts in borrowing costs if market volatility resumes.”
Technical Aspects on EUR/JPY
Karen Jones, Head Technical Analyst at Commerzbank mentions that the “EUR/JPY strong rebound off the 131.43/14 support (uptrend and 55 day ma) and subsequent break above the short term downtrend suggests some unfinished business on the topside. Strongerresistance lies at 133.82 (May high) ahead of the 134.95 recent high.”
EUR/JPY climbing higher and higher for a fourth consecutive day
The EUR/JPY has been trading consistently higher since the early Asian opening trading session, due to the fact that risk sentiment hit the “on” button, after a down-to-the-wire agreement between House Republicans and President Obama sent the S&P 500 to its biggest single day rally since January 2 and convinced market participants to damp their safe haven assets. On the other hand, traders should be not in any case relaxed. Elaborating on, traders should not get laid back on the fact that risk appetite is again on the backdrop since, Draghi alongside with the other ECB members has clearly stated his intention to maintain loose policy along with concerns for any serious rise in market rates that could choke off budding economic recovery. Precisely, Draghi, who is in the U.S. to attend the annual meetings of the International Monetary Fund and the World Bank, mentioned yesterday at the Economic Club of New York that “policy makers’ pledge to keep interest rates low explicitly allows for cuts in borrowing costs if market volatility resumes.”
Technical Aspects on EUR/JPY
Karen Jones, Head Technical Analyst at Commerzbank mentions that the “EUR/JPY strong rebound off the 131.43/14 support (uptrend and 55 day ma) and subsequent break above the short term downtrend suggests some unfinished business on the topside. Strongerresistance lies at 133.82 (May high) ahead of the 134.95 recent high.”