14 Nov 2013
EUR/JPY storms through 134.00, faces offers 134.30
FXstreet.com (Barcelona) - EUR/JPY is building up on recent gains, with a soaring Nikkei acting as principal catalyst, sending the exchange rate towards new weekly highs at 134.30 resistance, where offers were lying up.
Weak shorts have been covering in a pair that remains very much in a wide 135.30/40-131.33/40 daily range but has recently regained an impressive bullish sentiment, mainly on broad-based Yen weakness.
Comments from Japan’s finance minister Aso saying that "Japan must always be ready to send signal to markets to curb excessive, one-sided FX moves..." and " Japan must set aside necessary reserves to conduct FX intervention when needed" are attributed to have fuel up buying interest in the Nikkei 225.
Technically speaking, EUR/JPY has now the challenging mission of breaking through 134.30 to target next upside hurdle at 134.80 - intraday level - ahead of 135.30/40 topside of its daily range. On the downside, dips buying interest should start at 134.00, with the technical picture to remain constructive unless 133.00 area is regained by sellers.
Weak shorts have been covering in a pair that remains very much in a wide 135.30/40-131.33/40 daily range but has recently regained an impressive bullish sentiment, mainly on broad-based Yen weakness.
Comments from Japan’s finance minister Aso saying that "Japan must always be ready to send signal to markets to curb excessive, one-sided FX moves..." and " Japan must set aside necessary reserves to conduct FX intervention when needed" are attributed to have fuel up buying interest in the Nikkei 225.
Technically speaking, EUR/JPY has now the challenging mission of breaking through 134.30 to target next upside hurdle at 134.80 - intraday level - ahead of 135.30/40 topside of its daily range. On the downside, dips buying interest should start at 134.00, with the technical picture to remain constructive unless 133.00 area is regained by sellers.