Back
1 Nov 2013
EUR/JPY struggles to recapture the 133.00 handle
FXstreet.com (Athens) – The EUR/JPY is making its best effort to overcome again the 133.00 area the last couple of hours, but still lacks the uptrend momentum to do so.
The EUR/JPY is behaving entirely differently in the European trading hours in relation to its trend shift in the Asian trading session. Briefly, while in Asia mainly due to the sharp fall of the Nikkei index as well as due to the single currency weakening across the board, the cross suffered major losses. Interestingly, in the last couple of hours the cross gained some uptrend momentum trying to move higher, but it is still well capped by 133.00 area. An increasing number of analysts, traders now believe that ECB will cut the rate interest ‘sooner’ than ‘later’; precisely, UBS “expects ECB to cut its interest rates on the 7th November due to yesterday’s muted inflation”. Such a move would probably put the common currency under more pressure, thus would also had a negative impact on the cross.
Technical Perspective on the EUR/JPY
The cross missed the opportunity to extend its uptrend momentum when on Wednesday reached closely the 2013 peak (135.52), touching the 134.45 level. While, it failed to do so, the probabilities to continue on a downtrend shift are high. The crucial supports are laying at 132.47 (daily low as of 11th October), 132.00 (mainly psychological level) and finally 131.69 (daily low as of 10th October). On the upside, the cross should first of all overcome the first hurdle as of 133.70 (38.2%Fib. of the downtrend move as of 135.45-132.62), in order to focus again the 134.40-134.50 area, where the 100-hourly SMA and 200-hourly SMA are laying.
The EUR/JPY is behaving entirely differently in the European trading hours in relation to its trend shift in the Asian trading session. Briefly, while in Asia mainly due to the sharp fall of the Nikkei index as well as due to the single currency weakening across the board, the cross suffered major losses. Interestingly, in the last couple of hours the cross gained some uptrend momentum trying to move higher, but it is still well capped by 133.00 area. An increasing number of analysts, traders now believe that ECB will cut the rate interest ‘sooner’ than ‘later’; precisely, UBS “expects ECB to cut its interest rates on the 7th November due to yesterday’s muted inflation”. Such a move would probably put the common currency under more pressure, thus would also had a negative impact on the cross.
Technical Perspective on the EUR/JPY
The cross missed the opportunity to extend its uptrend momentum when on Wednesday reached closely the 2013 peak (135.52), touching the 134.45 level. While, it failed to do so, the probabilities to continue on a downtrend shift are high. The crucial supports are laying at 132.47 (daily low as of 11th October), 132.00 (mainly psychological level) and finally 131.69 (daily low as of 10th October). On the upside, the cross should first of all overcome the first hurdle as of 133.70 (38.2%Fib. of the downtrend move as of 135.45-132.62), in order to focus again the 134.40-134.50 area, where the 100-hourly SMA and 200-hourly SMA are laying.