5 Nov 2013
EUR/JPY tumbles alongside with Nikkei decline
FXstreet.com (Athens) – The EUR/JPY was hovering around 133.30 area but as soon as the Nikkei printed losses – even modest ones – the pair found itself much lower near 132.70 area.
EUR/JPY falls as the complex of JPY crosses move downwards on Nikkei fall, risk-off sentiment
The EUR/JPY was trading near 133.30 area, as long as Nikkei was on a positive area. As soon as the Nikkei started to enter the negative territory, printing modest losses, the EUR/JPY was dragged abruptly downwards almost 70 pips, enforcing also the other JPY crosses to a similar trend shift. It would be noteworthy to point out, that while Nikkei didn’t post immense losses – just slight ones – it was probably the fact that now Nikkei is very close to break its 9-month rising uptrend line that put most pressure on the JPY crosses.
Technical Aspects on the EUR/JPY
Karen Jones Head Technical Analyst of Commerzbank suggests that “EUR/JPY is seeing a small rebound from its 55 day ma at 132.68.We look for this to be tepid. We regard the pattern on the market as a potential rising wedge (reversal pattern) and a weekly close below the 132.01 level should be enough to complete the pattern and introduce scope to 122.80.”
EUR/JPY falls as the complex of JPY crosses move downwards on Nikkei fall, risk-off sentiment
The EUR/JPY was trading near 133.30 area, as long as Nikkei was on a positive area. As soon as the Nikkei started to enter the negative territory, printing modest losses, the EUR/JPY was dragged abruptly downwards almost 70 pips, enforcing also the other JPY crosses to a similar trend shift. It would be noteworthy to point out, that while Nikkei didn’t post immense losses – just slight ones – it was probably the fact that now Nikkei is very close to break its 9-month rising uptrend line that put most pressure on the JPY crosses.
Technical Aspects on the EUR/JPY
Karen Jones Head Technical Analyst of Commerzbank suggests that “EUR/JPY is seeing a small rebound from its 55 day ma at 132.68.We look for this to be tepid. We regard the pattern on the market as a potential rising wedge (reversal pattern) and a weekly close below the 132.01 level should be enough to complete the pattern and introduce scope to 122.80.”