Back
5 Jun 2013
EUR/JPY opens in London on the defensive
FXstreet.com (London) - Interestingly, the EUR/JPY reached a high of 131.42 again overnight just as it did in the Asian market on Tuesday, but despite, the pair has shed over a big figure and has been handed over to European traders around 130.30/40 lvl having failed the descending resistance.
Analysts at Commerzbank said that despite the rebound, the market has yet to tackle the near term resistance line and 20 day ma at 131.34/49, and very near term the market is on the defensive. “This opens the way up for a slide to the February high at 127.71 and the 55 day moving average at 128.31 to be revisited,” said Karen Jones, Senior analyst for Commerzbank. She went onto say that the 6 month uptrend is located at 127.05, and given the 13 count on the weekly chart and the TD perfected set up, the market is likely to struggle to make gains beyond the 133.82 recent high. She sighted that any short term bounce should fail ahead of or around the 132.78 mid- May high.
Coming up this morning, we get the final reading of the services PMIs for May, with the risks lying toward upward revisions compared to the flash readings. We also get the second reading for Q1 GDP, which is expected to remain unchanged at -0.2% Q/Q. Support is sited 129.90 and 129.00 the figure.
Analysts at Commerzbank said that despite the rebound, the market has yet to tackle the near term resistance line and 20 day ma at 131.34/49, and very near term the market is on the defensive. “This opens the way up for a slide to the February high at 127.71 and the 55 day moving average at 128.31 to be revisited,” said Karen Jones, Senior analyst for Commerzbank. She went onto say that the 6 month uptrend is located at 127.05, and given the 13 count on the weekly chart and the TD perfected set up, the market is likely to struggle to make gains beyond the 133.82 recent high. She sighted that any short term bounce should fail ahead of or around the 132.78 mid- May high.
Coming up this morning, we get the final reading of the services PMIs for May, with the risks lying toward upward revisions compared to the flash readings. We also get the second reading for Q1 GDP, which is expected to remain unchanged at -0.2% Q/Q. Support is sited 129.90 and 129.00 the figure.