Back
24 Dec 2014
EUR/JPY recovery may continue – Varengold
FXStreet (Barcelona) - The Varengold Bank Research Team anticipates EUR/JPY recovery to continue and push the higher again.
Key Quotes
“Yesterday revised third-quarter U.S. gross domestic product report blew past expactions to register the fastest pace of growth in 11 years. U.S. economic growth in the third quarter was revised up to 5 percent from 3.9 percent, the largest gain since the third quarter of 2003. Therefore the USD strengthened for a fifth day versus the JPY as consumer spending accelerated to the highest since 2007, which was more than forecasted.”
“The EUR decreased to a two-year low versus the USD based on turmoil in Greece. Greek Prime Minister Samaras failed to get support among lawmakers for his choice, Stavros Dimas, for president. Attention now turns to the final attempt on December 29. A failure will dissolve parliament and lead to early elections. The EUR/USD decreased 0.5 percent to 1.2172 and the USD/JPY rose 0.5 percent to 120.69. The EUR bought 146.90 JPY.”
“Since November 10th the pair climbed above a bullish Fibonacci fan and reached its high around 149.73 on December 8th. Afterwards it decreased along a bearish trend line but was recently able to recover at the support line around 145.60. We might expect that the recovery will continue and rise again inside the fan. The climbing MACD supports our analyse.”
Key Quotes
“Yesterday revised third-quarter U.S. gross domestic product report blew past expactions to register the fastest pace of growth in 11 years. U.S. economic growth in the third quarter was revised up to 5 percent from 3.9 percent, the largest gain since the third quarter of 2003. Therefore the USD strengthened for a fifth day versus the JPY as consumer spending accelerated to the highest since 2007, which was more than forecasted.”
“The EUR decreased to a two-year low versus the USD based on turmoil in Greece. Greek Prime Minister Samaras failed to get support among lawmakers for his choice, Stavros Dimas, for president. Attention now turns to the final attempt on December 29. A failure will dissolve parliament and lead to early elections. The EUR/USD decreased 0.5 percent to 1.2172 and the USD/JPY rose 0.5 percent to 120.69. The EUR bought 146.90 JPY.”
“Since November 10th the pair climbed above a bullish Fibonacci fan and reached its high around 149.73 on December 8th. Afterwards it decreased along a bearish trend line but was recently able to recover at the support line around 145.60. We might expect that the recovery will continue and rise again inside the fan. The climbing MACD supports our analyse.”