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9 Sep 2013
EUR/JPY, wiping out earlier gains; is 131 in danger?
FXstreet.com (Chicago) - EUR/JPY heads down after a formidable runaway gap opened the session a few hours ago. The pair hit 131.04 daily lows after mixed Japanese data was released.
Japan on a roll?
Price action reveals the pair weakens despite a very strong opening with runaway gap indicating heavy buying. Japanese equities had surged on Olympic win for the 2020 Summer Olympic in Tokyo which, according to the country’s Chief Cabinet, will boost the economy, favoring Prime Minister Abe and consolidating “Abenomics” ahead of a potential sales tax hike next October 2nd. Earlier published results indicated the GDP annualized (Q2) for the country was 3.8% vs. past 2.6% and expected 3.7%. In Europe, only the Sentix investor confidence is due at 8:30 GMT.
EUR/JPY Technical Levels
At 131.15, the pair oscillates between supports at 130.73 (August 31st lows), 130.37 (August 29th highs) ahead of 130.00 (August 29th lows) and resistances at 131.14 (September 5th lows), 131.52 (August 31st highs) followed by 131.82 (September 5th highs). According to the FXstreet.com trend index, the pair is slightly bullish on one-hour timeframe analysis above the EMA20.
Japan on a roll?
Price action reveals the pair weakens despite a very strong opening with runaway gap indicating heavy buying. Japanese equities had surged on Olympic win for the 2020 Summer Olympic in Tokyo which, according to the country’s Chief Cabinet, will boost the economy, favoring Prime Minister Abe and consolidating “Abenomics” ahead of a potential sales tax hike next October 2nd. Earlier published results indicated the GDP annualized (Q2) for the country was 3.8% vs. past 2.6% and expected 3.7%. In Europe, only the Sentix investor confidence is due at 8:30 GMT.
EUR/JPY Technical Levels
At 131.15, the pair oscillates between supports at 130.73 (August 31st lows), 130.37 (August 29th highs) ahead of 130.00 (August 29th lows) and resistances at 131.14 (September 5th lows), 131.52 (August 31st highs) followed by 131.82 (September 5th highs). According to the FXstreet.com trend index, the pair is slightly bullish on one-hour timeframe analysis above the EMA20.