1 Jul 2013
Flash: EUR/JPY looks capped at 55 d ma
FXstreet.com (London) - Axel Rudolph, analyst at Commerzbank said the EUR/JPY again looks to be capped by the 55 day ma at 129.6.
"As long as the 130 region caps, attention should revert back to the base of the daily cloud which is located at 126.47. Near term strength has not dislodged anything of note and the market will maintain a negative bias while trading below the 131.30 June 11 high. " The team are looking for a slide back to the 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). Axel Rudolph said 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.
"As long as the 130 region caps, attention should revert back to the base of the daily cloud which is located at 126.47. Near term strength has not dislodged anything of note and the market will maintain a negative bias while trading below the 131.30 June 11 high. " The team are looking for a slide back to the 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). Axel Rudolph said 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.