4 Jul 2013
EUR/JPY lost grip on pivot
FXstreet.com (London) - EUR/JPY was a bad performer yesterday.
Although EUR/JPY did manage to retrace some losses in NY, the pair has fallen back below the pivot point ahead of ECB today. The pair remains in negative territory, while fundamentals in the EZ printing a poorer outlook. Ahead of ECB, EZ GDP printed worse than expectations. The result came in -1.7% vrs -1.0% previous and -1.1% consensus. That coupled against poor services PMI’s yesterday, and current problems with Portugal is making for a market short EUR. Moreover, there is sentiment that the ECB might offer a more dovish tone to temper yields, and against a backdrop of an improving Japanese economy, the pair remains offered.
EUR/JPY has reversed
Senior Analysts, Axel Rudolph and Karen Jone at Commerzbank, said theIt has done so just ahead of the 131.12/30 resistance band (April high, the June 11 high and the top of the daily cloud) as expected and has reacted back towards the 20-day ma at 128.48. They said as long as 131.30 caps, there is a risk of a slide back to the base of the cloud at 126.47 then 125.00/124.45 band of support (mid-April low and the 23.6% retracement of the entire move up from the July 2012 low). They sigh this as a key band of support and 124.45 is considered the break down point to 118.82/65, the February and April lows and the 38.2% retracement of the same move. “Above 131.30 will abort the foregoing and suggest a retest of the 133.82 May high.”
Although EUR/JPY did manage to retrace some losses in NY, the pair has fallen back below the pivot point ahead of ECB today. The pair remains in negative territory, while fundamentals in the EZ printing a poorer outlook. Ahead of ECB, EZ GDP printed worse than expectations. The result came in -1.7% vrs -1.0% previous and -1.1% consensus. That coupled against poor services PMI’s yesterday, and current problems with Portugal is making for a market short EUR. Moreover, there is sentiment that the ECB might offer a more dovish tone to temper yields, and against a backdrop of an improving Japanese economy, the pair remains offered.
EUR/JPY has reversed
Senior Analysts, Axel Rudolph and Karen Jone at Commerzbank, said theIt has done so just ahead of the 131.12/30 resistance band (April high, the June 11 high and the top of the daily cloud) as expected and has reacted back towards the 20-day ma at 128.48. They said as long as 131.30 caps, there is a risk of a slide back to the base of the cloud at 126.47 then 125.00/124.45 band of support (mid-April low and the 23.6% retracement of the entire move up from the July 2012 low). They sigh this as a key band of support and 124.45 is considered the break down point to 118.82/65, the February and April lows and the 38.2% retracement of the same move. “Above 131.30 will abort the foregoing and suggest a retest of the 133.82 May high.”