5 Nov 2013
EUR/JPY under pressure on ECB’s Asmusen quotes, dismal EZ PMI data
FXstreet.com (Athens) – The EUR/JPY has lost solid ground the last hour –roughly 20 pips – as market participants have priced in that after today’s dismal EZ PMI data ECB is under pressure to at least signal a loosening monetary policy on Thursday.
EUR/JPY capped for a second consecutive day by 133.34; ECB under heavy pressure
The EUR/JPY has been trending downwards the past hour, inspired by the very dismal EZ PPI data showing that inflation is lethargic in Euro land. ECB’s Asmusen quotes also might added some slight pressure on the cross, as ECB’s official mentioned that “recovery is weak, fragile, uneven.” Finally, it seems that the EUR/JPY is capped by the 50% Fibonacci retracement (also October 31st low) as of 133.34 area, since for the second consecutive day the EUR/JPY could not help to overcome this handle and thus, dragged abruprty downwards.
Technical Perspective on the EUR/JPY
As above depicted, the fact that the cross can’t help itself for a second straight day to overcome the 133.34 handle (50% Fibonacci retracement, also October 31st low), it might be a bear sign for the cross. Karen Jones Head Technical Analyst of Commerzbank mentions that “EUR/JPY is seeing a small rebound from its 55 day ma at 132.68 and a weekly close below the 132.01 level should be enough to complete the pattern and introduce scope to 122.80.”
EUR/JPY capped for a second consecutive day by 133.34; ECB under heavy pressure
The EUR/JPY has been trending downwards the past hour, inspired by the very dismal EZ PPI data showing that inflation is lethargic in Euro land. ECB’s Asmusen quotes also might added some slight pressure on the cross, as ECB’s official mentioned that “recovery is weak, fragile, uneven.” Finally, it seems that the EUR/JPY is capped by the 50% Fibonacci retracement (also October 31st low) as of 133.34 area, since for the second consecutive day the EUR/JPY could not help to overcome this handle and thus, dragged abruprty downwards.
Technical Perspective on the EUR/JPY
As above depicted, the fact that the cross can’t help itself for a second straight day to overcome the 133.34 handle (50% Fibonacci retracement, also October 31st low), it might be a bear sign for the cross. Karen Jones Head Technical Analyst of Commerzbank mentions that “EUR/JPY is seeing a small rebound from its 55 day ma at 132.68 and a weekly close below the 132.01 level should be enough to complete the pattern and introduce scope to 122.80.”