Back
16 Sep 2013
EUR/JPY moves sideways on closed Japanese markets
FXstreet.com (Athens)- The EUR/JPY is trading mostly sideways since the Asian trading opening session, ahead of a light calendar and due to closed Japanese markets.
With little important data on the Japanese economic calendar for the coming week – only the August Trade Balance figures and the weekly domestic/foreign flow of stocks/bonds figures are of interest, the focus will be mostly be on Euro land news. Elaborating on, as we have been since the start of August, any progress that reduces the threat of US military intervention has been perceived as “risk positive,” in that stocks have rallied alongside the US Dollar, while the Japanese Yen, crude oil, and precious metals have fallen. Now, taken for granted that “Russia and the US agreeing to peace talks in Geneva, Switzerland, to figure out how to strip the Syrian regime of chemical weapons,” the Japanese currency may depreciate further. However traders should bear into major consideration that we are ahead of Germany’s elections; and the Germany’s anti Europe-party could leave next Sunday’s election result open. Today at 9:00 GMT hours there is Euro zone CPI release, a figure that could influence the pair’s trend.
Technical Outlook and Strategic Bias on EUR/JPY
Karen Jones, Head Technical Analyst at Commerzbank suggests “that the EUR/JPY has broken out of its triangle formation and targets the 133.82 May high in the first instance.“ She also mentions that ““The triangle measures up to 141.05. Support is seen between the 55 day moving average at 130.51 and the triangle support line at 129.56.”
With little important data on the Japanese economic calendar for the coming week – only the August Trade Balance figures and the weekly domestic/foreign flow of stocks/bonds figures are of interest, the focus will be mostly be on Euro land news. Elaborating on, as we have been since the start of August, any progress that reduces the threat of US military intervention has been perceived as “risk positive,” in that stocks have rallied alongside the US Dollar, while the Japanese Yen, crude oil, and precious metals have fallen. Now, taken for granted that “Russia and the US agreeing to peace talks in Geneva, Switzerland, to figure out how to strip the Syrian regime of chemical weapons,” the Japanese currency may depreciate further. However traders should bear into major consideration that we are ahead of Germany’s elections; and the Germany’s anti Europe-party could leave next Sunday’s election result open. Today at 9:00 GMT hours there is Euro zone CPI release, a figure that could influence the pair’s trend.
Technical Outlook and Strategic Bias on EUR/JPY
Karen Jones, Head Technical Analyst at Commerzbank suggests “that the EUR/JPY has broken out of its triangle formation and targets the 133.82 May high in the first instance.“ She also mentions that ““The triangle measures up to 141.05. Support is seen between the 55 day moving average at 130.51 and the triangle support line at 129.56.”