31 Oct 2013
EUR/JPY forges 135.20 grounds
FXstreet.com (Chicago) - EUR/JPY retraced from the 135.45 zone extending the bearish channel until hitting the 135.20 front. With an upward trendline intact, it is expected the pair will continue rising.
Data, perspective
Market participants expect foreign bond investment results in Japan long foreign investment in the country’s stocks joined by the Nomura/JMMA manufacturing purchasing manager index. Earlier in Europe, the consumer confidence index was published at -14.5 vs. past -14.9 while the economic sentiment indicator was 97.8 vs. past 96.9 and estimates at 97.3. The services sentiment was -3.7 vs. expected -2.8.
According to FXstreet.com analyst, Valeria Bednarik, “the EUR/JPY trades near its highest level in over two years, set at 135.49 past week, and maintaining a strong bearish tone according to the hourly chart, as indicators head north above their midlines while moving averages gain bullish slope below current price. Yen weakness continues to excel across the board, although with stocks sliding, risk of yen gains after Nikkei opening increase. Nevertheless, the pair may extend up to 136.00 in the short term, and pullbacks will likely remain shallow and above 134.50 support zone.”
EUR/JPY Technical Levels
Price action reveals the pair forms a double top pattern around the 135.40 zone (October 22nd highs also) to retrace minimally. Remaining very close to immediate resistance, the upward trendline with origins from last October 9th, is intact. Offered at 135.23, the pair oscillates between the supports aligned at 134.79 (October 27th highs), 134.47 (October 24th highs) ahead of 134.20 (October 17th highs) and the resistances set at 135.20 (October 22ns highs), 135.50 (October 21st highs) followed by 136 (July 14th 2009 highs). According to the FXstreet.com trend index, the pair is slightly bullish on one-hour timeframe analysis above the EMA20.
Data, perspective
Market participants expect foreign bond investment results in Japan long foreign investment in the country’s stocks joined by the Nomura/JMMA manufacturing purchasing manager index. Earlier in Europe, the consumer confidence index was published at -14.5 vs. past -14.9 while the economic sentiment indicator was 97.8 vs. past 96.9 and estimates at 97.3. The services sentiment was -3.7 vs. expected -2.8.
According to FXstreet.com analyst, Valeria Bednarik, “the EUR/JPY trades near its highest level in over two years, set at 135.49 past week, and maintaining a strong bearish tone according to the hourly chart, as indicators head north above their midlines while moving averages gain bullish slope below current price. Yen weakness continues to excel across the board, although with stocks sliding, risk of yen gains after Nikkei opening increase. Nevertheless, the pair may extend up to 136.00 in the short term, and pullbacks will likely remain shallow and above 134.50 support zone.”
EUR/JPY Technical Levels
Price action reveals the pair forms a double top pattern around the 135.40 zone (October 22nd highs also) to retrace minimally. Remaining very close to immediate resistance, the upward trendline with origins from last October 9th, is intact. Offered at 135.23, the pair oscillates between the supports aligned at 134.79 (October 27th highs), 134.47 (October 24th highs) ahead of 134.20 (October 17th highs) and the resistances set at 135.20 (October 22ns highs), 135.50 (October 21st highs) followed by 136 (July 14th 2009 highs). According to the FXstreet.com trend index, the pair is slightly bullish on one-hour timeframe analysis above the EMA20.