8 Nov 2013
EUR/JPY eyes again its daily highs
FXstreet.com (Athens) – Despite the fact that the EUR/JPY got on the back foot following the France downgrade, it has regained uptrend momentum and now is hovering near its daily highs.
The EUR/JPY got on the back foot as soon as the S&P cut the country's credit rating to AA from AA+. Briefly, the pair was hovering around the 131.55 area but well after the news released across the board, the cross dragged down to 131.27 level, losing abruptly 28 pips. However, since then, the pair managed to pluck up with the courage to regain uptrend momentum. Precisely at the time of writing, the cross is trading at 131.83 close to its daily high of 131.88.
Technical Aspects on the EUR/JPY
The EUR/JPY’s first crucial support area resides at the 131.44 (Ichimoku base cloud) - 131.50 (100-daily SMA), but if this area is decently breached, the pair could move further downwards near its 200-daily SMA (129.16). Karen Jones Head Technical Analyst of Commerzbank mentions that “EUR/JPY eroded the 132.01 uptrend….Intraday rallies will find good interim resistance at 132.35, 133.70. The next break down point is the 131.15 October low.”
The EUR/JPY got on the back foot as soon as the S&P cut the country's credit rating to AA from AA+. Briefly, the pair was hovering around the 131.55 area but well after the news released across the board, the cross dragged down to 131.27 level, losing abruptly 28 pips. However, since then, the pair managed to pluck up with the courage to regain uptrend momentum. Precisely at the time of writing, the cross is trading at 131.83 close to its daily high of 131.88.
Technical Aspects on the EUR/JPY
The EUR/JPY’s first crucial support area resides at the 131.44 (Ichimoku base cloud) - 131.50 (100-daily SMA), but if this area is decently breached, the pair could move further downwards near its 200-daily SMA (129.16). Karen Jones Head Technical Analyst of Commerzbank mentions that “EUR/JPY eroded the 132.01 uptrend….Intraday rallies will find good interim resistance at 132.35, 133.70. The next break down point is the 131.15 October low.”