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23 Sep 2013
EUR/JPY, one of the globe’s risk gauges, is correcting ST; support 133.33
FXstreet.com (Barcelona) - EUR/JPY popped higher at the open – likely on the Merkel victory in Germany – bur has reversed and gone red on a general “risk off” mood taking over for the short-term.
EUR/JPY, as a risk gauge, signaling short-term weakness for risk assets
EUR/JPY traders optimistically bought the EUR/JPY at the open hoping perhaps that the Merkel victory in Germany would give the cross another tailwind. The reality presented by other risk assets – namely the S&P 500 futures and their giving up support convincingly on Friday – made even the news-induced rally this morning a selling opportunity, though.
Technical outlook for EUR/JPY
Technicians say EURJPY should see a continued pullback to one of two possible Fibonacci retracement levels – either 133.33 or 132.56. The obvious resistance for the cross comes in at Thursday’s high at 134.94, but technicians say the next up move should take the cross to 136.50 – 138.50 (depending on the starting point of the rally).
EUR/JPY, as a risk gauge, signaling short-term weakness for risk assets
EUR/JPY traders optimistically bought the EUR/JPY at the open hoping perhaps that the Merkel victory in Germany would give the cross another tailwind. The reality presented by other risk assets – namely the S&P 500 futures and their giving up support convincingly on Friday – made even the news-induced rally this morning a selling opportunity, though.
Technical outlook for EUR/JPY
Technicians say EURJPY should see a continued pullback to one of two possible Fibonacci retracement levels – either 133.33 or 132.56. The obvious resistance for the cross comes in at Thursday’s high at 134.94, but technicians say the next up move should take the cross to 136.50 – 138.50 (depending on the starting point of the rally).