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6 Sep 2013
EUR/JPY finds grounds; takes off; targets 130.70 zone
FXstreet.com (Chicago) - EUR/JPY plunged throughout Friday’s session accumulating 0.57% daily losses so far after the release of Japanese data and weaker than expected European results.
Trade balances, Tax hikes
Earlier in Japan, the BoJ monthly economic survey was made public. The report concluded “Japan’s economy is recovering moderately” confirming previous governmental statements. The tax sales hike, initially due next April 2014, may be advanced to the end of next month after the tankan survey results are released. The BoJ stated flexibility will allow the institution to take the necessary policy measures to handle inflation after a potential 3% tax sales hike is implemented (from 5% to 8% after new increase). In Europe, the leading economy in the European zone released its trade balance at 14.3B vs. previous 14.0B and past 17.9B. German industrial production was -1.7% (MoM) vs. projections at -0.5% and past results at 2.0%. France also released a weaker than expected trade balance at -5.1B vs. estimates at -4.5B. Italy’s trade balance was 2.797B vs. past 2.452B. Finally, Portugal’s GDP was -2.1% vs. past -4.0%.
The Nikkei 225 closed with 1.45% losses while in Europe the CAC 40 was up 1.06%, the DAX gained 0.49% and the Euronext 100 advanced 0.82%.
EUR/JPY Technical Levels
Price action reveals the pair bounced off 129.90 lows to partially recover losses. Traded at 130.63, the pair navigates between supports at 130.37 (August 22nd lows), 129.97 (August 31st lows) ahead of 129.69 (August 27th lows) and resistances at 130.73 (September 3rd lows), 131.14 (August 2nd lows) followed by 131.52 (September 3rd highs). The FXstreet.com trend index reports the pair as strongly bearish on one-hour timeframe analysis and is offered below the EMA20.
Trade balances, Tax hikes
Earlier in Japan, the BoJ monthly economic survey was made public. The report concluded “Japan’s economy is recovering moderately” confirming previous governmental statements. The tax sales hike, initially due next April 2014, may be advanced to the end of next month after the tankan survey results are released. The BoJ stated flexibility will allow the institution to take the necessary policy measures to handle inflation after a potential 3% tax sales hike is implemented (from 5% to 8% after new increase). In Europe, the leading economy in the European zone released its trade balance at 14.3B vs. previous 14.0B and past 17.9B. German industrial production was -1.7% (MoM) vs. projections at -0.5% and past results at 2.0%. France also released a weaker than expected trade balance at -5.1B vs. estimates at -4.5B. Italy’s trade balance was 2.797B vs. past 2.452B. Finally, Portugal’s GDP was -2.1% vs. past -4.0%.
The Nikkei 225 closed with 1.45% losses while in Europe the CAC 40 was up 1.06%, the DAX gained 0.49% and the Euronext 100 advanced 0.82%.
EUR/JPY Technical Levels
Price action reveals the pair bounced off 129.90 lows to partially recover losses. Traded at 130.63, the pair navigates between supports at 130.37 (August 22nd lows), 129.97 (August 31st lows) ahead of 129.69 (August 27th lows) and resistances at 130.73 (September 3rd lows), 131.14 (August 2nd lows) followed by 131.52 (September 3rd highs). The FXstreet.com trend index reports the pair as strongly bearish on one-hour timeframe analysis and is offered below the EMA20.