Forex: EUR/JPY drowns back to lows on NY
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EUR/JPY
FXstreet.com (Barcelona) - New York opening flows pulled the EURJPY back to the lows made during the Asian session after having retraced around 61.8% of the early plunge from 111.78 to 110.63 low. The market is making clear that American investors are "risk off" on Friday in reaction to yesterday's headlines about fiscal cliff negotations, threatening to be dragged into next week at best.
Japan's next Prime Minister Shinzo Abe does not intend to revise BOJ law as long as the central bank meets LDP Party's expectations and hopes the 2% inflation target is agreed upon for when the new government compiles economic stimulus measures in mid-January.
The Italian consumer confidence rose from 84.8 to 85.7 in December, beating consensus of 85.1. The German GfK consumer confidence eased from 5.8 to 5.6 in January, disappointing expectations of 5.9. The French Business Climate rose from 88 to 89 in December, as expected.
"The EURJPY's rise is overextended and, yesterday, made a lower high near the strong resistance at 111.44/111.60", wrote MIG Bank analyst Bijoy Kar, monitoring the key support at 109.93 (17/12/2012 low).
Japan's next Prime Minister Shinzo Abe does not intend to revise BOJ law as long as the central bank meets LDP Party's expectations and hopes the 2% inflation target is agreed upon for when the new government compiles economic stimulus measures in mid-January.
The Italian consumer confidence rose from 84.8 to 85.7 in December, beating consensus of 85.1. The German GfK consumer confidence eased from 5.8 to 5.6 in January, disappointing expectations of 5.9. The French Business Climate rose from 88 to 89 in December, as expected.
"The EURJPY's rise is overextended and, yesterday, made a lower high near the strong resistance at 111.44/111.60", wrote MIG Bank analyst Bijoy Kar, monitoring the key support at 109.93 (17/12/2012 low).
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