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18 Jun 2013
EUR/JPY jumps higher
FXstreet.com (Lodnon) - EUR/JPY has jumped higher since ECB president Draghi spoke this morning on the open of the European session.
EUR/JPY is printing 125.57 as a high score, some 110 pips higher on the session so far. The Yen has been hit else-where this morning, despite a moderate improvement Japanese Industrial Production which came in better than the previous at -3.4% vrs -6.7%.
EUR/JPY charted an inside day leaving the view unchanged.
Kare Jones, analyst for Commerzbank had already said that, in the near term, the risk is that we will see a small rebound off the 125.00/124.45 band of support (mid-April low and the 23.6% retracement of the entire move up from the July 2012 low) and we are now seeing this move perhaps. This is a key band of support but she said despite a bounce off it being seen, risks remain on the downside. 124.45 is considered by her to be the break down point to 118.82/65, the February and April lows and the 38.2% retracement of the same move.
She can see minor resistance around the 127.71 February peak. She explains that immediate downside pressure will be maintained while EUR/JPY stays below the 131.30 June 11 high.
EUR/JPY is printing 125.57 as a high score, some 110 pips higher on the session so far. The Yen has been hit else-where this morning, despite a moderate improvement Japanese Industrial Production which came in better than the previous at -3.4% vrs -6.7%.
EUR/JPY charted an inside day leaving the view unchanged.
Kare Jones, analyst for Commerzbank had already said that, in the near term, the risk is that we will see a small rebound off the 125.00/124.45 band of support (mid-April low and the 23.6% retracement of the entire move up from the July 2012 low) and we are now seeing this move perhaps. This is a key band of support but she said despite a bounce off it being seen, risks remain on the downside. 124.45 is considered by her to be the break down point to 118.82/65, the February and April lows and the 38.2% retracement of the same move.
She can see minor resistance around the 127.71 February peak. She explains that immediate downside pressure will be maintained while EUR/JPY stays below the 131.30 June 11 high.