Forex: EUR/JPY breaks above 105.00 on LDP's Abe and German Merkel
Forex pairs in this Article »
EUR/JPY
FXstreet.com (Barcelona) - From the 104.10 low printed during the Asian session plunge on the Eurogroup inconclusive meeting, the EURJPY retraced and broke above the 105.00 psychological level as the Yen weakens on LDP's Sinzo Abe words. German Chancellor comments about the eventual Eurogroup decision on Greece also strengthened the Euro.
Replying to BoJ's Shirakawa, Abe explained that he didn't say he was in favor of the BoJ underwriting bonds from the government directly, but buying bonds from the market. He also corrected the "3% inflation" remark to 2 to 3 pct. Shinzo Abe plans to change the Constitution in regard to the "right to self defense", increase military spending and send officials to the disputed islands with China. Also, he would cut corporate tax rates strongly and welfare in 10%.
German Chancellor Angela Merkel defended that lower rates and increasing EFSF guarantees by ¬10B are the solution to Greece's financing hole through 2016. She blamed the lack of financial regulation for the crisis and it's not going to be solved that soon. Merkel believes and agreement on Greek aid will be made on Monday, but Greece must stick to its reforms.
Commerzbank analysts expect the 104.59/82 area (triple Fibonacci - the 61.8% Fibonacci retracement of the move seen this year - the 23.6% retracement of the move down from 2009 and the 38.2% retracement of the move down from the 2011 peak) to provoke short term profit taking. "We also note the TD perfection set up on the 240 minute chart which suggests a small pullback prior to another leg higher to the 2009-2012 resistance line at 106.57.
Replying to BoJ's Shirakawa, Abe explained that he didn't say he was in favor of the BoJ underwriting bonds from the government directly, but buying bonds from the market. He also corrected the "3% inflation" remark to 2 to 3 pct. Shinzo Abe plans to change the Constitution in regard to the "right to self defense", increase military spending and send officials to the disputed islands with China. Also, he would cut corporate tax rates strongly and welfare in 10%.
German Chancellor Angela Merkel defended that lower rates and increasing EFSF guarantees by ¬10B are the solution to Greece's financing hole through 2016. She blamed the lack of financial regulation for the crisis and it's not going to be solved that soon. Merkel believes and agreement on Greek aid will be made on Monday, but Greece must stick to its reforms.
Commerzbank analysts expect the 104.59/82 area (triple Fibonacci - the 61.8% Fibonacci retracement of the move seen this year - the 23.6% retracement of the move down from 2009 and the 38.2% retracement of the move down from the 2011 peak) to provoke short term profit taking. "We also note the TD perfection set up on the 240 minute chart which suggests a small pullback prior to another leg higher to the 2009-2012 resistance line at 106.57.
Free Annual Reports
