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10 Sep 2013
EUR/JPY at a major crossroads just below 132.41 resistance; watch for head fakes
FXstreet.com (Barcelona) - The EUR/JPY has been rising recently as the euro has been winning the battle of the weak currencies of late. With BOJ minutes just out and only Italian GDP due out later today, technicals may rule for the rest of Tuesday.
EUR/JPY has been rising – highlighting just how awful the Yen has been trading of late
Bank of Japan Policy Meeting Minutes just released revealed a sense of growing fiscal conservatism on the Board. If they follow through with proposed tax reforms and clean up their balance sheet, will they need to be monetary doves to counteract any slowdown pressures from their fiscal moves? In that case, the Yen might sell-off. However, if they are cleaning up their fiscal house, wouldn’t that make them even moreof a safe haven currency? If that were the case, we might see the Yen rally whenever the “risk off” trade is en vogue, but not in general.
Technical outlook for EUR/JPY
Technicians have been calling for a correction lower in the EUR/JPY for a while, but the cross has refused to cooperate thus far. They identify key “correction resistance” and horizontal line resistance at the 132.31 to 132.42 range. Any close above that level will force an avalanche of bears to get stopped out. However, if EUR/JPY falters here once again, a cascade lower could commence.
EUR/JPY has been rising – highlighting just how awful the Yen has been trading of late
Bank of Japan Policy Meeting Minutes just released revealed a sense of growing fiscal conservatism on the Board. If they follow through with proposed tax reforms and clean up their balance sheet, will they need to be monetary doves to counteract any slowdown pressures from their fiscal moves? In that case, the Yen might sell-off. However, if they are cleaning up their fiscal house, wouldn’t that make them even moreof a safe haven currency? If that were the case, we might see the Yen rally whenever the “risk off” trade is en vogue, but not in general.
Technical outlook for EUR/JPY
Technicians have been calling for a correction lower in the EUR/JPY for a while, but the cross has refused to cooperate thus far. They identify key “correction resistance” and horizontal line resistance at the 132.31 to 132.42 range. Any close above that level will force an avalanche of bears to get stopped out. However, if EUR/JPY falters here once again, a cascade lower could commence.