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8 Oct 2013
EUR/JPY reflecting global risk appetite – non-existant for anything more than a day trade
FXstreet.com (Barcelona) - The EUR/JPY traded lower again Monday – crashing through “correction support” at 131.69 easily. Buyers are scarce in general and when they do show up, it’s just for a few hours.
EUR/JPY traders get something other than global risk appetite on which to focus Tuesday
The Japanese trade balance figures came out showing a deficit slightly greater than expectations – which is proving to be Yen-bearish as the EUR/JPY catches a bounce. EUR/JPY traders will also get to digest Japanese Eco Watchers survey data at 04:00 GMT. Later, during European hours, traders will get the German Trade Balance and German Factory Orders data which may influence the EUR/JPY. Overall, though, look to the EUR/JPY to continue to be used by institutions as a proxy for the “risk trade”.
Technical outlook for EUR/JPY
Technicians say that now that “correction support” at 131.69 has failed that the next two downside targets for EUR/JPY will be 130.83 and 130.30 – both Fibonacci targets. Resistance for the cross comes in at Thursday’s close of 132.44.
EUR/JPY traders get something other than global risk appetite on which to focus Tuesday
The Japanese trade balance figures came out showing a deficit slightly greater than expectations – which is proving to be Yen-bearish as the EUR/JPY catches a bounce. EUR/JPY traders will also get to digest Japanese Eco Watchers survey data at 04:00 GMT. Later, during European hours, traders will get the German Trade Balance and German Factory Orders data which may influence the EUR/JPY. Overall, though, look to the EUR/JPY to continue to be used by institutions as a proxy for the “risk trade”.
Technical outlook for EUR/JPY
Technicians say that now that “correction support” at 131.69 has failed that the next two downside targets for EUR/JPY will be 130.83 and 130.30 – both Fibonacci targets. Resistance for the cross comes in at Thursday’s close of 132.44.