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12 Sep 2013
EUR/JPY trades well below 133.00 ahead of Draghi
FXstreet.com (Athens)- The EUR/JPY is trading downwards since the trading session opening on dismal senior European officials statements and ahead of Draghi’s speech.
EUR/JPY is trading lower ahead of today’s Draghi speech and after some discouraging comments made on behalf of Euro zone officials. Furthermore, the pair’s downtrend could well attributed to a corrective price action following the currency standout performance amid a swell in risk appetite the recent days. However, risk appetite may deflate somewhat after the recent big-splash improvement. Last but not least, earlier comments by EU officials might pushed further the downtrend of the pair; EU's Barnier reported to say that “ More work needed on EU-US swap rules cooperation. EU margin req's are more conservative than in the US.”
Technical Outlook and Strategic Bias on EUR/JPY
Karen Jones, Head Technical Analyst at Commerzbank suggests “that the EUR/JPY has broken out of its triangle formation and targets the 133.82 May high in the first instance.“ She also mentions that ““The triangle measures up to 141.05. Support is seen between the 55 day moving average at 130.51 and the triangle support line at 129.56.”
At the time of writing the pair is trading near 132.28, down 0.53%. The FXstreet.com Trend Index shows the pair to be slightly bearish in the 15 minutes chart. Daily pivot point support can be found at S3: 130.26 S2: 130.03 S3: 129.84 and resistance at R1: 133.96, R2:134.40 R3: 134.63, respectively.
EUR/JPY is trading lower ahead of today’s Draghi speech and after some discouraging comments made on behalf of Euro zone officials. Furthermore, the pair’s downtrend could well attributed to a corrective price action following the currency standout performance amid a swell in risk appetite the recent days. However, risk appetite may deflate somewhat after the recent big-splash improvement. Last but not least, earlier comments by EU officials might pushed further the downtrend of the pair; EU's Barnier reported to say that “ More work needed on EU-US swap rules cooperation. EU margin req's are more conservative than in the US.”
Technical Outlook and Strategic Bias on EUR/JPY
Karen Jones, Head Technical Analyst at Commerzbank suggests “that the EUR/JPY has broken out of its triangle formation and targets the 133.82 May high in the first instance.“ She also mentions that ““The triangle measures up to 141.05. Support is seen between the 55 day moving average at 130.51 and the triangle support line at 129.56.”
At the time of writing the pair is trading near 132.28, down 0.53%. The FXstreet.com Trend Index shows the pair to be slightly bearish in the 15 minutes chart. Daily pivot point support can be found at S3: 130.26 S2: 130.03 S3: 129.84 and resistance at R1: 133.96, R2:134.40 R3: 134.63, respectively.