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9 Sep 2013
EUR/JPY spiked at 131.81 after Sentix data, but pared gains quickly
FXstreet.com (Athens)- The EUR/JPY was heavily boosted after the Sentix Investor Confidence released, but soon reversed at its earlier trading area.
EUR/JPY seems to be driven mostly by geopolitical upheaval issues
The Sentix Investor Confidence index released much better than expected at +6.5 versus -3.5 expected and -4.9 the prior one. Following the data, the EUR/JPY was immensely boosted touching the high as of 131.81, but very soon the pair erased its gains. It seems that amidst NFP, Syria and problems in Euro land (political problems in coalition forces in Italy, a third bailout package in Greece seems inevitable and there is also political uncertainty in Cyprus), the Japanese currency will find the way to stabilize. Therefore, independently of solid Euro data, the Yen stands to be the preferred safe haven in FX markets during times of geopolitical upheaval. Regarding the fact that sabre-rattling between Russia and the United States peaked on Friday, driving demand for safety and we are ahead of the congress voting this week, investors should not be taken aback by a further bolstering of the Japanese currency.
Technical outlook on EUR/JPY
At the time of writing the pair is trading near 131.24, up 0.54%. The FXstreet.com Trend Index shows the pair to be slightly bullish in the 15 minutes chart. Daily pivot point support van be found at S3: 130.26 S2: 130.03 S3: 129.84 R1: 132.45 R2:132.77 R3: 132.95
EUR/JPY seems to be driven mostly by geopolitical upheaval issues
The Sentix Investor Confidence index released much better than expected at +6.5 versus -3.5 expected and -4.9 the prior one. Following the data, the EUR/JPY was immensely boosted touching the high as of 131.81, but very soon the pair erased its gains. It seems that amidst NFP, Syria and problems in Euro land (political problems in coalition forces in Italy, a third bailout package in Greece seems inevitable and there is also political uncertainty in Cyprus), the Japanese currency will find the way to stabilize. Therefore, independently of solid Euro data, the Yen stands to be the preferred safe haven in FX markets during times of geopolitical upheaval. Regarding the fact that sabre-rattling between Russia and the United States peaked on Friday, driving demand for safety and we are ahead of the congress voting this week, investors should not be taken aback by a further bolstering of the Japanese currency.
Technical outlook on EUR/JPY
At the time of writing the pair is trading near 131.24, up 0.54%. The FXstreet.com Trend Index shows the pair to be slightly bullish in the 15 minutes chart. Daily pivot point support van be found at S3: 130.26 S2: 130.03 S3: 129.84 R1: 132.45 R2:132.77 R3: 132.95