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13 Sep 2013
EUR/JPY moving sideways ahead of EZ FinMin meeting
FXstreet.com (Athens)- The EUR/JPY is moving slightly higher amidst the meeting among the Finance Ministers of Euro land.
Will today’s meeting of the FinMin of EZ becomes a driver for EUR/JPY direction?
Today, the Finance Ministers of Euro land gather to discuss topics which will likely
include the status of the bailout program for Cyprus, as well as the funding gap of around EUR4.0 billion for Greece. Despite that other Japanese crosses move upwards (thus the Japanese currency depreciates) due to reports suggesting that “the Japanese PM Abe and core members of his cabinet have agreed in principle to
raise the sales tax as planned from 5% to 8% in April 2014, the EUR/JPY is under pressure. This might be attributed to the 1.5% m/m contraction in Euro zone July industrial production. Furthermore, we should not forget that Draghi stated yesterday that the upturn is still “very, very green”. Last but not least, traders should in any case take into deep consideration the Russian report saying “Fukushima reactor is "not under control": melted reactor has eaten through concrete.
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.”
Will today’s meeting of the FinMin of EZ becomes a driver for EUR/JPY direction?
Today, the Finance Ministers of Euro land gather to discuss topics which will likely
include the status of the bailout program for Cyprus, as well as the funding gap of around EUR4.0 billion for Greece. Despite that other Japanese crosses move upwards (thus the Japanese currency depreciates) due to reports suggesting that “the Japanese PM Abe and core members of his cabinet have agreed in principle to
raise the sales tax as planned from 5% to 8% in April 2014, the EUR/JPY is under pressure. This might be attributed to the 1.5% m/m contraction in Euro zone July industrial production. Furthermore, we should not forget that Draghi stated yesterday that the upturn is still “very, very green”. Last but not least, traders should in any case take into deep consideration the Russian report saying “Fukushima reactor is "not under control": melted reactor has eaten through concrete.
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.”