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7 Oct 2013
EUR/JPY dropping out from the wedge
FXstreet.com (London) - EUR/JPY has dropped out from the bearish wedge formation and has made a fresh low on the session, in a continuation of the bear trend set from Thursday highs.
EUR/JPY has printed 131.34 in late NA markets while markets fly the JPY and continue in form as the US government shutdown lasts longer than what markets had been first anticipating. The JPY is better supported on risk aversion and Risk of short-covering remains high Also, research teams at TD Securities noted that Japan PM Abe was indicating that labour reforms may be delayed risks undermining perception of reform progress (and weigh on Nikkei). Seasonal factors have not had a lot of traction in the past few months but history suggests that October remains the best month of the year for the JPY. A soft close for USD/JPY last Friday was a “heads up” that weakness may extend across yen crosses.
EUR/JPY Levels
The 20 DMA is 132.82, the 50 DMA is 131.40 and the 200 DMA is 127.43. RSI (14) reads 31.66. Supports are ascending from 130.36, 130.67 and 130.99. Spot is currently 131.35 while resistances are 131.73, 132.67, 133.20, 133.47 and 134.95.
EUR/JPY has printed 131.34 in late NA markets while markets fly the JPY and continue in form as the US government shutdown lasts longer than what markets had been first anticipating. The JPY is better supported on risk aversion and Risk of short-covering remains high Also, research teams at TD Securities noted that Japan PM Abe was indicating that labour reforms may be delayed risks undermining perception of reform progress (and weigh on Nikkei). Seasonal factors have not had a lot of traction in the past few months but history suggests that October remains the best month of the year for the JPY. A soft close for USD/JPY last Friday was a “heads up” that weakness may extend across yen crosses.
EUR/JPY Levels
The 20 DMA is 132.82, the 50 DMA is 131.40 and the 200 DMA is 127.43. RSI (14) reads 31.66. Supports are ascending from 130.36, 130.67 and 130.99. Spot is currently 131.35 while resistances are 131.73, 132.67, 133.20, 133.47 and 134.95.