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15 Aug 2013
EUR/JPY rallying off of troublesome Japanese foreign investment data
FXstreet.com (Barcelona) - The EUR/JPY is bouncing sharply after data regarding foreign investment in Japanese stocks and bonds was released Thursday morning.
Traders taking the data as Yen bearish in the first few post-data minutes
The EUR/JPY bounced from 129.70 to 129.92 in just 15 minutes following the release of the Japanese foreign investment data. The bounce is coming after a nearly 1,000 pip slide from 130.65 at 02:00 GMT to 129.65 at 23:50 GMT on Wednesday.
Technical outlook for EUR/JPY
As noted above, technicians are pointing to a potential completion of an “abc” correction to the downside at 128.07 for the EUR/JPY. If that level holds, then a move up to 132.64 should take place. On the other hand, if the euro is really to falter and the Yen is destined to rally further, they say that 128.07 should give way as support sooner than later. If that support falters, then 126.77 would be the next mile-marker on the downside. Shorter-term support comes in at the afore-mentioned 129.70 from less than an hour ago. Shorter-term resistance comes into play at Wednesday’s peak of 130.65.
Traders taking the data as Yen bearish in the first few post-data minutes
The EUR/JPY bounced from 129.70 to 129.92 in just 15 minutes following the release of the Japanese foreign investment data. The bounce is coming after a nearly 1,000 pip slide from 130.65 at 02:00 GMT to 129.65 at 23:50 GMT on Wednesday.
Technical outlook for EUR/JPY
As noted above, technicians are pointing to a potential completion of an “abc” correction to the downside at 128.07 for the EUR/JPY. If that level holds, then a move up to 132.64 should take place. On the other hand, if the euro is really to falter and the Yen is destined to rally further, they say that 128.07 should give way as support sooner than later. If that support falters, then 126.77 would be the next mile-marker on the downside. Shorter-term support comes in at the afore-mentioned 129.70 from less than an hour ago. Shorter-term resistance comes into play at Wednesday’s peak of 130.65.