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18 Sep 2013
EUR/JPY firm at 3-year altitudes; hovering at EMA20 intersection
FXstreet.com (Chicago) - EUR/JPY extended trendless price movement after the closing of the American trading session and ahead of Tokyo. The pair accumulates minimal gains and maintains 3-year altitudes ahead of one of the most important meetings in the year (US FOMC) and after facts demonstrating a modest Euro-zone recovery.
Data recap
Earlier in Europe, a sea of red floods left the equity markets with losses with the CAC40 registering 0.16% losses, the DAX down 0.19% and the Euronext 100 down 0.24%. In Japan, the Nikkei closed with 0.65% losses after a strong start of the week (Monday closed on holiday). Matching expectations, consumer price indexes in the old continent revealed slight improvements in the economy confirmed by a lower labor cost at 0.9%. Despite a worse than estimated trade balance account at 11.1B vs. expected 15.3B euro, the ZEW survey – economic sentiment beat estimates reaching 58.6 vs. projections at 47.2 and past 44.0 results. Hours away from the FOMC in the US, market participants wait for trade balance results for the Asian country.
EUR/JPY Technical Levels
Price action reveals two breakthroughs earlier in the day and a stalling phase towards the closing of the American trading session. The pair registers minimal gains at 0.04% after a series of peaks capped at the strong 132.62 resistance. Offered at 132.44, bulls pressure outweighs bearish demands and the pair oscillates between supports aligned at 132.41 (September 15th highs), 132.30 (September 5th highs) ahead of 131.87 (September 16th lows) and resistances at 132.62 (September 13th highs), 132.84 (September 10th lows) followed by 133.30 (September 11th highs). According to the FXstreet.com trend index, the pair is slightly bearish on one-hour timeframe analysis with a neutral EMA20. Maintaining the upward trendline and 3-year altitudes, primary and secondary trends indicate the pair is set up for a bull move or price correction within the same channel.
Data recap
Earlier in Europe, a sea of red floods left the equity markets with losses with the CAC40 registering 0.16% losses, the DAX down 0.19% and the Euronext 100 down 0.24%. In Japan, the Nikkei closed with 0.65% losses after a strong start of the week (Monday closed on holiday). Matching expectations, consumer price indexes in the old continent revealed slight improvements in the economy confirmed by a lower labor cost at 0.9%. Despite a worse than estimated trade balance account at 11.1B vs. expected 15.3B euro, the ZEW survey – economic sentiment beat estimates reaching 58.6 vs. projections at 47.2 and past 44.0 results. Hours away from the FOMC in the US, market participants wait for trade balance results for the Asian country.
EUR/JPY Technical Levels
Price action reveals two breakthroughs earlier in the day and a stalling phase towards the closing of the American trading session. The pair registers minimal gains at 0.04% after a series of peaks capped at the strong 132.62 resistance. Offered at 132.44, bulls pressure outweighs bearish demands and the pair oscillates between supports aligned at 132.41 (September 15th highs), 132.30 (September 5th highs) ahead of 131.87 (September 16th lows) and resistances at 132.62 (September 13th highs), 132.84 (September 10th lows) followed by 133.30 (September 11th highs). According to the FXstreet.com trend index, the pair is slightly bearish on one-hour timeframe analysis with a neutral EMA20. Maintaining the upward trendline and 3-year altitudes, primary and secondary trends indicate the pair is set up for a bull move or price correction within the same channel.