5 Sep 2013
EUR/JPY flirting with 132.00 area
FXstreet.com (Athens)-The EUR/JPY faces 132.00 as the Japanese currency is losing momentum across the board.
The EUR/JPY spikes on 131.95 on a rally of the single currency against its Japanese counter-part
The pair is trading heavily upwards, following the massive uptrend in all Japanese crosses. Earlier, there were a lot of boosting comments on behalf of BoJ showing that the current monetary policy will last for long time. Bank of Japan Governor Kuroda said that “ BoJ will take necessary steps to reach 2% inflation target; doesn't think tax rise will damage path” and that doesn't think sales tax increase will break Japanese economy; Japanese growth will exceed potential even with tax.” What’s more, the solid factory orders on behalf of Germany might have assisted the boosting demand for the single currency. Needless to mention, the focus will be placed on ECB minutes, thus not on what Mario Draghi will do which is expected to be nothing what he will say.
TECHNICAL PERSPECTIVE ON EUR/JPY
Karen Jones, Head of Technical Analysis at Commerzbank notes that “EUR/JPY remains within its converging range limits of 129.12 and 132.25.” Also she says that “Above here will see the 132.74 July high challenged and potentially the 133.82 May high.”At the time of writing the pair is trading near 131.95, up 0.20%. The FXstreet.com Trend Index shows the pair to be slightly bullish in the 15 minutes chart. Daily pivot point support and resistance can be found at S3: 131.26 S2: 131.13 S3: 130.93 R1: 132.45 R2:132.77 R3: 132.95
The EUR/JPY spikes on 131.95 on a rally of the single currency against its Japanese counter-part
The pair is trading heavily upwards, following the massive uptrend in all Japanese crosses. Earlier, there were a lot of boosting comments on behalf of BoJ showing that the current monetary policy will last for long time. Bank of Japan Governor Kuroda said that “ BoJ will take necessary steps to reach 2% inflation target; doesn't think tax rise will damage path” and that doesn't think sales tax increase will break Japanese economy; Japanese growth will exceed potential even with tax.” What’s more, the solid factory orders on behalf of Germany might have assisted the boosting demand for the single currency. Needless to mention, the focus will be placed on ECB minutes, thus not on what Mario Draghi will do which is expected to be nothing what he will say.
TECHNICAL PERSPECTIVE ON EUR/JPY
Karen Jones, Head of Technical Analysis at Commerzbank notes that “EUR/JPY remains within its converging range limits of 129.12 and 132.25.” Also she says that “Above here will see the 132.74 July high challenged and potentially the 133.82 May high.”At the time of writing the pair is trading near 131.95, up 0.20%. The FXstreet.com Trend Index shows the pair to be slightly bullish in the 15 minutes chart. Daily pivot point support and resistance can be found at S3: 131.26 S2: 131.13 S3: 130.93 R1: 132.45 R2:132.77 R3: 132.95