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26 Aug 2013
EUR/JPY overbought and nearing correction resistance at 132.73
FXstreet.com (Barcelona) - The EUR/JPY has been on the rise as European data has been trending bullish while Japan continues to search for answers to their internal issues.
With weak data flow, EUR/JPY will look to global equity markets for guidance
There will not be any market-moving data points for Europe or Japan on Monday, so traders will have to key off of the European and Japanese equity markets trading action for short-term directional guidance. Early Monday, the Nikkei was just below the flat line – so no clear guidance is to be gleaned by EUR/JPY traders thus far.
Technical take on EUR/JPY
Technicians are calling for short-term continued upside for EUR/JPY up to the 132.73 – the “correction resistance” level that should not be violated if this up move is only corrective in nature. A breakout above that level will mean much more upside potential is opened up. However, any failure there could lead to a substantial sell-off that could reach down to 123.55 – a key Fibonacci retracement line. Shorter-term support for EUR/JPY comes in at the 8/22 low of 130.28.
With weak data flow, EUR/JPY will look to global equity markets for guidance
There will not be any market-moving data points for Europe or Japan on Monday, so traders will have to key off of the European and Japanese equity markets trading action for short-term directional guidance. Early Monday, the Nikkei was just below the flat line – so no clear guidance is to be gleaned by EUR/JPY traders thus far.
Technical take on EUR/JPY
Technicians are calling for short-term continued upside for EUR/JPY up to the 132.73 – the “correction resistance” level that should not be violated if this up move is only corrective in nature. A breakout above that level will mean much more upside potential is opened up. However, any failure there could lead to a substantial sell-off that could reach down to 123.55 – a key Fibonacci retracement line. Shorter-term support for EUR/JPY comes in at the 8/22 low of 130.28.