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6 Jan 2014
EUR/JPY retracing overnight decline
FXstreet.com (Barcelona) - Having posted a high at 142.67, EUR/JPY declined overnight to make a low at 141.48, before climbing to where it is presently trading at 142.22.
EUR/JPY led lower by Nikkei correlation
With Yen negatively correlated with the Nikkei, EUR/JPY declined overnight alongside USD/JPY, as the Nikkei declined 2.35%. It was a quiet night of data with Japanese Vehicle sales climbing MoM, but Chinese HSBC Services PMI declining. This morning has seen mixed to better Eurozone PMIs, with Eurozone Services PMI and Composite PMI numbers falling in line with expectations, causing EUR to climb, with EUR/JPY moving off lows. Plotting a Fibonacci retracement from the recent high at 145.67 to this mornings low at 141.48, we can see spot approaching resistance at the 23.6% mark at 142.54. Further, looking at a daily chart, calculating the same FibRet from the 131.20 low (Nov 7) to the high at 145.67 (Dec 27), we see spot presently sitting on 76,4% retracement support at 142.34.
What are today´s key EUR/JPY technicals?
Hourly RSI sits at 51, with ADX at 20 and neutral. The hourly 200 SMA is at 143.69 and providing resistance, alongside the 20D EMA at 142.42. The daily pivot point sits at 142.52, doubling up as resistance, with R1 above at 143.12 and S1 supporting below at 141.74. Below today's low at 141.48, we see 140.90-03 (Dec 11 & 17 low) offering support. On a weekly chart we can also see a Dark Cloud cover candlestick pattern.
EUR/JPY led lower by Nikkei correlation
With Yen negatively correlated with the Nikkei, EUR/JPY declined overnight alongside USD/JPY, as the Nikkei declined 2.35%. It was a quiet night of data with Japanese Vehicle sales climbing MoM, but Chinese HSBC Services PMI declining. This morning has seen mixed to better Eurozone PMIs, with Eurozone Services PMI and Composite PMI numbers falling in line with expectations, causing EUR to climb, with EUR/JPY moving off lows. Plotting a Fibonacci retracement from the recent high at 145.67 to this mornings low at 141.48, we can see spot approaching resistance at the 23.6% mark at 142.54. Further, looking at a daily chart, calculating the same FibRet from the 131.20 low (Nov 7) to the high at 145.67 (Dec 27), we see spot presently sitting on 76,4% retracement support at 142.34.
What are today´s key EUR/JPY technicals?
Hourly RSI sits at 51, with ADX at 20 and neutral. The hourly 200 SMA is at 143.69 and providing resistance, alongside the 20D EMA at 142.42. The daily pivot point sits at 142.52, doubling up as resistance, with R1 above at 143.12 and S1 supporting below at 141.74. Below today's low at 141.48, we see 140.90-03 (Dec 11 & 17 low) offering support. On a weekly chart we can also see a Dark Cloud cover candlestick pattern.