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24 Dec 2013
EUR/JPY overbought but still in bullish technical posture; next target 144.74
FXstreet.com (Barcelona) - EUR/JPY has resumed the upside bias after taking a few days to consolidate some gains.
EUR/JPY traders waiting on Japanese data
With no market-moving news due out of Europe on Tuesday, EUR/JPY traders will be trading off of the Bank of Japan Monthly Economic Survey as well as off of the general attitude towards risk assets. The latter of those two factors has been on display in the relationship between the Nikkei and the Yen as of late. When it’s “risk on”, the Nikkei rallies. When it’s “risk off”, the Yen rallies. Right now, the Nikkei is still up after a nice gap up and the Yen is trading heavy as usual.
Technical outlook for EUR/JPY
Technicians say the EUR/JPY is overbought and overdue for a corrective move lower. Given the time of year and the window dressing that may be going on, the EUR/JPY cross is liable to continue to resist correcting lower until the end of the year and perhaps even into the first few sessions of 2014. Resistance for the macro move comes in at 145.76. But, some shorter-term resistance comes in at 144.74. Support starts at the 12/19 pivot low of 141.86 and is backed up by the 12/17 low of 140.98.
EUR/JPY traders waiting on Japanese data
With no market-moving news due out of Europe on Tuesday, EUR/JPY traders will be trading off of the Bank of Japan Monthly Economic Survey as well as off of the general attitude towards risk assets. The latter of those two factors has been on display in the relationship between the Nikkei and the Yen as of late. When it’s “risk on”, the Nikkei rallies. When it’s “risk off”, the Yen rallies. Right now, the Nikkei is still up after a nice gap up and the Yen is trading heavy as usual.
Technical outlook for EUR/JPY
Technicians say the EUR/JPY is overbought and overdue for a corrective move lower. Given the time of year and the window dressing that may be going on, the EUR/JPY cross is liable to continue to resist correcting lower until the end of the year and perhaps even into the first few sessions of 2014. Resistance for the macro move comes in at 145.76. But, some shorter-term resistance comes in at 144.74. Support starts at the 12/19 pivot low of 141.86 and is backed up by the 12/17 low of 140.98.