6 Sep 2013
EUR/JPY under pressure on risk-aversion and poor data
FXstreet.com (Ατηενσ) - The EUR/JPY is falling downwards for a second consecutive day on Nikkei drop, ‘risk-aversion looming’ and dismal German data.
Traders didn’t get off guard on falling EUR/JPY as Nikkei today
It was the first time during the week that Nikkei lost ground, therefore it was more than plausible that the pair would move downwards. Investors should never forget the highly opposite correlation between the Japanese currency and the Nikkei index. Apart from Nikkei falling, the pair was might also under pressure due to disappointing figures on behalf of the power horse of Euro zone Germany, as well as on lack of risk-appetite. However, as mentioned if we continue to see rising Treasury yields that Yen strength could be short lived.
TECHNICAL PERSPECTIVE ON EUR/JPY
The pair is trading well above its 4-hours 200 EMA at 130.50, but has already broken the resistance as of 131.10. After the 200 hours EMA at 130.50, traders should take into consideration, the psychological support of 130.00 area.At the time of writing the pair is trading near 130.61, down 0.54%. The FXstreet.com Trend Index shows the pair to be slightly bearish in the 15 minutes chart. Daily pivot point support can be found at S3: 130.26 S2: 130.03 S3: 129.84 and resistance at R1: 132.45 R2:132.77 R3: 132.95, respectively.
Traders didn’t get off guard on falling EUR/JPY as Nikkei today
It was the first time during the week that Nikkei lost ground, therefore it was more than plausible that the pair would move downwards. Investors should never forget the highly opposite correlation between the Japanese currency and the Nikkei index. Apart from Nikkei falling, the pair was might also under pressure due to disappointing figures on behalf of the power horse of Euro zone Germany, as well as on lack of risk-appetite. However, as mentioned if we continue to see rising Treasury yields that Yen strength could be short lived.
TECHNICAL PERSPECTIVE ON EUR/JPY
The pair is trading well above its 4-hours 200 EMA at 130.50, but has already broken the resistance as of 131.10. After the 200 hours EMA at 130.50, traders should take into consideration, the psychological support of 130.00 area.At the time of writing the pair is trading near 130.61, down 0.54%. The FXstreet.com Trend Index shows the pair to be slightly bearish in the 15 minutes chart. Daily pivot point support can be found at S3: 130.26 S2: 130.03 S3: 129.84 and resistance at R1: 132.45 R2:132.77 R3: 132.95, respectively.