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12 Sep 2013
EUR/JPY succumbs to 131.73 weekly lows to snap back above 132.00
FXstreet.com (Chicago) - EUR/JPY could not stand the bearish pressure that sent the pair to the grounds around 131.73, weekly lows, to eras most gains obtained throughout the week. In the afternoon of the American trading session, the euro attempts to come back but remains capped at 132.20.
Data released and equities
Price action reveals a steep decline that started at the opening of the Asian session. The Nikkei’s performance dragged most crosses down on the strengthening of the yen with the euro being no exception. Underperforming results for machinery orders (MoM) at 0% vs. expected 2.4% along foreign bond investment at -66.5B vs. past -530.9B yen were digested by market participants early in Japan. For the Euro-zone, industrial production (MoM) disappointed at -1.5% vs. past 0.6% and estimates at 0.1%. President Draghi welcomed Latvia as a new member of the union and equity markets closed with losses with the Nikkei 225 down 0.26%, the CAC 40 down 0.30%, the DAX down 0.02% and the Euronext 100 down 0.18%.
EUR/JPY Technical Levels
Price action reveals the pair attempts to consolidate above the 132.00 after giving it in to drop to 131.73 lows. Marking higher lows, a potential reversal is consolidating. Offered at 132.18, the pair oscillates between supports at 131.87 (September 10th lows), 131.45 (September 3rd highs) ahead of 130.97 (September 9th lows) and resistances at 132.20 (September 9th highs), 132.41 (August 23rd highs) followed by 132.75 (September 11th lows). According to the FXstreet.com trend index, the pair is strongly bearish on one-hour timeframe analysis and is offered below the EMA20.
Data released and equities
Price action reveals a steep decline that started at the opening of the Asian session. The Nikkei’s performance dragged most crosses down on the strengthening of the yen with the euro being no exception. Underperforming results for machinery orders (MoM) at 0% vs. expected 2.4% along foreign bond investment at -66.5B vs. past -530.9B yen were digested by market participants early in Japan. For the Euro-zone, industrial production (MoM) disappointed at -1.5% vs. past 0.6% and estimates at 0.1%. President Draghi welcomed Latvia as a new member of the union and equity markets closed with losses with the Nikkei 225 down 0.26%, the CAC 40 down 0.30%, the DAX down 0.02% and the Euronext 100 down 0.18%.
EUR/JPY Technical Levels
Price action reveals the pair attempts to consolidate above the 132.00 after giving it in to drop to 131.73 lows. Marking higher lows, a potential reversal is consolidating. Offered at 132.18, the pair oscillates between supports at 131.87 (September 10th lows), 131.45 (September 3rd highs) ahead of 130.97 (September 9th lows) and resistances at 132.20 (September 9th highs), 132.41 (August 23rd highs) followed by 132.75 (September 11th lows). According to the FXstreet.com trend index, the pair is strongly bearish on one-hour timeframe analysis and is offered below the EMA20.