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19 Aug 2013
EUR/JPY coiling like a snake. Which direction will it strike?
FXstreet.com (Barcelona) - After a nice up move last Tuesday, the EUR/JPY has been trading in a range from 129.41 to 130.76 – like a snake coiling before it strikes.
EUR/JPY oscillating in narrow range – potentially setting up for a big move
The EUR/JPY continues to trade in a trading range after moving sharply higher last Tuesday. This type of action is typically a pre-cursor for a big move in either direction.
This week, traders in the EUR/JPY will get some direction from the following data points:
• Monday: Spanish 10-Year Auction
• Tuesday: Japanese All Industry Activity Index; German PPI
• Wednesday: nothing
• Thursday: German PMI; EuroZone PMI
• Friday: German GDP; German Import Prices; EuroZone Consumer Confidence
Technical outlook for EUR/JPY
Technicians identify key “correction support” as being well-established down at 128.07 for the EUR/JPY. If that level, which was tested last Monday, holds up as support, then a move up to 132.64 should take place. On the other hand, if the euro is (as some forecast) ready to falter and the Yen is destined to rally further (as some are forecasting), they say that 128.07 should give way as support sooner than later. If that support falters, then 126.77 would be the next mile-marker on the downside. Shorter-term resistance comes in at Fibonacci correction resistance (very short-term) at 130.14. Shorter-term support comes into play at today’s low of 129.84.
EUR/JPY oscillating in narrow range – potentially setting up for a big move
The EUR/JPY continues to trade in a trading range after moving sharply higher last Tuesday. This type of action is typically a pre-cursor for a big move in either direction.
This week, traders in the EUR/JPY will get some direction from the following data points:
• Monday: Spanish 10-Year Auction
• Tuesday: Japanese All Industry Activity Index; German PPI
• Wednesday: nothing
• Thursday: German PMI; EuroZone PMI
• Friday: German GDP; German Import Prices; EuroZone Consumer Confidence
Technical outlook for EUR/JPY
Technicians identify key “correction support” as being well-established down at 128.07 for the EUR/JPY. If that level, which was tested last Monday, holds up as support, then a move up to 132.64 should take place. On the other hand, if the euro is (as some forecast) ready to falter and the Yen is destined to rally further (as some are forecasting), they say that 128.07 should give way as support sooner than later. If that support falters, then 126.77 would be the next mile-marker on the downside. Shorter-term resistance comes in at Fibonacci correction resistance (very short-term) at 130.14. Shorter-term support comes into play at today’s low of 129.84.