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2 Oct 2013
EUR/JPY sinks amid risk-aversion sentiment
FXstreet.com (Athens) – The EUR/JPY has been heading heavily downwards today, since the Japanese currency is outperforming across the board amidst the US, Italian jitters and ahead of ECB.
EUR/JPY tumbles amidst US default on its own debt; will ECB signal another LTRO?
The EUR/JPY has been losing ground today since mostly due to the general risk-off environment. Furthermore, investors didn’t seem to be much amused by PM Abe’s yesterday statement regarding the corporate tax, even there was chattering on a potential debate on that. What’s more, US fiscal cliff issue surely assisted to a more or less extent to drag the pair further downwards. However, most of all the above, it seems that the sharp today’s decline of Nikkei (-1.86%), was the key major driver to push downwards the cross, as the Japanese Index and the safe-haven currency are highly negatively correlated. Traders should bear carefully in mind that the President of ECB Mario Draghi has a habit of dropping the odd verbal bombshell, which have in the past impacted the currency heavily.
Technical Outlook on EUR/JPY
Karen Jones, Head Technical Analyst at Commerzbank suggests that the “EUR/JPY has seen a strong rebound from the 55 day ma at 131.35 and remains under pinned by the 130.57/30 3 month uptrend.The intraday charts are suggesting intraday rebounds will struggle around current levels for another slide lower, however are giving conflicting signals and it is not clear.”
EUR/JPY tumbles amidst US default on its own debt; will ECB signal another LTRO?
The EUR/JPY has been losing ground today since mostly due to the general risk-off environment. Furthermore, investors didn’t seem to be much amused by PM Abe’s yesterday statement regarding the corporate tax, even there was chattering on a potential debate on that. What’s more, US fiscal cliff issue surely assisted to a more or less extent to drag the pair further downwards. However, most of all the above, it seems that the sharp today’s decline of Nikkei (-1.86%), was the key major driver to push downwards the cross, as the Japanese Index and the safe-haven currency are highly negatively correlated. Traders should bear carefully in mind that the President of ECB Mario Draghi has a habit of dropping the odd verbal bombshell, which have in the past impacted the currency heavily.
Technical Outlook on EUR/JPY
Karen Jones, Head Technical Analyst at Commerzbank suggests that the “EUR/JPY has seen a strong rebound from the 55 day ma at 131.35 and remains under pinned by the 130.57/30 3 month uptrend.The intraday charts are suggesting intraday rebounds will struggle around current levels for another slide lower, however are giving conflicting signals and it is not clear.”