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22 Oct 2013
EUR/JPY spikes on the early European trading session
FXstreet.com (Athens) – The EUR/JPY has been trading higher since the kick off of the early European trading session ahead of a week that is expected to boost the single currency in terms of fundamental aspects.
The EUR/JPY has been trading consistently higher since early Asian trading session for a second consecutive day. Market participants could well attribute this uptrend movement to a couple of factors, one of them is the Japanese currency weakness across the board due to Nikkei rise but also partly to yesterday’s disappointing Japanese data. Reading between the lines we could say that the major catalyst that pushed the cross higher was the release of the exports growth in Japan yesterday; the data showed that Japanese exports increased by 11.5% on a yearly basis on September, which is the slowest rate in 3-months. Precisely, exports missed consensus of (+15.6%) and the Japanese currency was severely hurt across the board sending the cross higher. What’s more, Japan witnessed another month of trade deficit and to be elaborate on, the trade balance in Japan released at negative levels for a consecutive 15th month. This might be a problem to the country which might be in need – soon - to import capital. Finally, there is an anticipation that the single currency might find solid boost from the fundamental perspective ahead of this week (German PMI, Euro zone PMI, Confidence).
Technical Aspects on the EUR/JPY
Karen Jones Head Technical Analyst of Commerzbank, mentions that the “EUR/JPY has eroded the May peak at 133.82 and attention has reverted to the 134.95 September high and the 135.15 2013 resistance line. Currently the 240 minute chart is suggesting intraday dips will hold in the 133.60/15 band prior to another upside attempt .Support just below here lies at the August high at 132.42 and the early September high at 132.14. Still further down sits the 55 day moving average at 131.85 and the October low at 131.15.”
The EUR/JPY has been trading consistently higher since early Asian trading session for a second consecutive day. Market participants could well attribute this uptrend movement to a couple of factors, one of them is the Japanese currency weakness across the board due to Nikkei rise but also partly to yesterday’s disappointing Japanese data. Reading between the lines we could say that the major catalyst that pushed the cross higher was the release of the exports growth in Japan yesterday; the data showed that Japanese exports increased by 11.5% on a yearly basis on September, which is the slowest rate in 3-months. Precisely, exports missed consensus of (+15.6%) and the Japanese currency was severely hurt across the board sending the cross higher. What’s more, Japan witnessed another month of trade deficit and to be elaborate on, the trade balance in Japan released at negative levels for a consecutive 15th month. This might be a problem to the country which might be in need – soon - to import capital. Finally, there is an anticipation that the single currency might find solid boost from the fundamental perspective ahead of this week (German PMI, Euro zone PMI, Confidence).
Technical Aspects on the EUR/JPY
Karen Jones Head Technical Analyst of Commerzbank, mentions that the “EUR/JPY has eroded the May peak at 133.82 and attention has reverted to the 134.95 September high and the 135.15 2013 resistance line. Currently the 240 minute chart is suggesting intraday dips will hold in the 133.60/15 band prior to another upside attempt .Support just below here lies at the August high at 132.42 and the early September high at 132.14. Still further down sits the 55 day moving average at 131.85 and the October low at 131.15.”