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12 Jul 2013
EUR/JPY heading towards 129.00
FXstreet.com (London) - EUR/JPY has seen a 129.98 high overnight but is resuming the 129.00 handle in European trade.
The EUR/JPY has seen a choppy week with movements of over 200 pips in a single session. Focus has been turned towards the US again this week and price action has been subsequent to sentiment around a US recovery and exactly when the Fed will commence tapering QE. The market will look for numbers in the EZ Industrial Production w.d.a. (YoY) (May) at 9GMT as the major data release this morning. In the afternoon, the US takes to the stage with Michigan Consumer Sentiment at 13.55GMT that could add something to an otherwise quiet looking end to a very choppy week.
EUR/JPY remains hampered
EUR/JPY remains hampered on the topside by the 130.25/131.30 resistance band (April high, the June 11 high and the top of the daily cloud), said Karen Jones, chief analyst at Commerzbank. “It is in the middle of its cloud and looks set to slide to the base of its cloud at 126.47.As long as 131.30 caps, there is a risk of a slide back to the base of the cloud at 126.47 then 125.00/124.45 band of support (mid-April low and the 23.6% retracement of the entire move up from the July 2012 low)”. She feels this is a key band of support and 124.45 is considered to be the break down point to 118.82/65, the February and April lows and the 38.2% retracement of the same move.
The EUR/JPY has seen a choppy week with movements of over 200 pips in a single session. Focus has been turned towards the US again this week and price action has been subsequent to sentiment around a US recovery and exactly when the Fed will commence tapering QE. The market will look for numbers in the EZ Industrial Production w.d.a. (YoY) (May) at 9GMT as the major data release this morning. In the afternoon, the US takes to the stage with Michigan Consumer Sentiment at 13.55GMT that could add something to an otherwise quiet looking end to a very choppy week.
EUR/JPY remains hampered
EUR/JPY remains hampered on the topside by the 130.25/131.30 resistance band (April high, the June 11 high and the top of the daily cloud), said Karen Jones, chief analyst at Commerzbank. “It is in the middle of its cloud and looks set to slide to the base of its cloud at 126.47.As long as 131.30 caps, there is a risk of a slide back to the base of the cloud at 126.47 then 125.00/124.45 band of support (mid-April low and the 23.6% retracement of the entire move up from the July 2012 low)”. She feels this is a key band of support and 124.45 is considered to be the break down point to 118.82/65, the February and April lows and the 38.2% retracement of the same move.