12 Nov 2013
EUR/JPY soars on Nikkei; 61.8% Fibonacci beckons?
FXstreet.com (Athens) – The EUR/JPY has been amidst an uptrend rally on Tuesday, partly due to the soaring Nikkei, as well as to positive outcome of the Third China’s Plenum.
The EUR/JPY is trending slightly south the last hour, but generally speaking has been trading to the upper level since the kick off of the early Asian trading session. Nikkei sharp gains (2.23% gains overnight with registered gains of 40.34% in the year up to date), alongside with the welcome results of the Third’s China Plenum assisted the cross to move higher. ECB’s Nowonty mentioned earlier that “There is no North-South division on the ECB governing council,” as well as “Stagnation, not inflation, is the real risk now.”
Technical Aspects on the EUR/JPY
The cross has managed to establish a bullish uptrend momentum, which started well after it made a decent close above the 132.05 level (50% Fibonacci retracement of the downwards movement of 2008 highs as of 169.97 to July’s 2012 lows of 94.12). The pairs has now regained a fairly enough uptrend momentum, threatening not only to touch the October highs (also 2013 highs) as of 135.32, but also to trend higher near the 61.8% Fibonacci retracement of the major downwards movement at 141.00 area. The cross should breach the 2013 high of 135.52 clearly in order to say that it can move higher towards the 141.00 level, while below, the first solid initial support can be well found at 132.90, followed by the 132.48 level (Top Cloud of Ichimoku).
The EUR/JPY is trending slightly south the last hour, but generally speaking has been trading to the upper level since the kick off of the early Asian trading session. Nikkei sharp gains (2.23% gains overnight with registered gains of 40.34% in the year up to date), alongside with the welcome results of the Third’s China Plenum assisted the cross to move higher. ECB’s Nowonty mentioned earlier that “There is no North-South division on the ECB governing council,” as well as “Stagnation, not inflation, is the real risk now.”
Technical Aspects on the EUR/JPY
The cross has managed to establish a bullish uptrend momentum, which started well after it made a decent close above the 132.05 level (50% Fibonacci retracement of the downwards movement of 2008 highs as of 169.97 to July’s 2012 lows of 94.12). The pairs has now regained a fairly enough uptrend momentum, threatening not only to touch the October highs (also 2013 highs) as of 135.32, but also to trend higher near the 61.8% Fibonacci retracement of the major downwards movement at 141.00 area. The cross should breach the 2013 high of 135.52 clearly in order to say that it can move higher towards the 141.00 level, while below, the first solid initial support can be well found at 132.90, followed by the 132.48 level (Top Cloud of Ichimoku).