Forex: EUR/JPY elevates to floor number 104.00
Forex pairs in this Article »
EUR/JPY
FXstreet.com (San Francisco) - Another round of yen weakness sent EURJPY to new two-week highs on Thursday, breaking above the 103.00 level to peak at 103.95 before closing the North American session up 1.5 percent on the day at 103.71.
"In the current fiscal cliff/risk averse/continued Greece and Spain concerned- environment I would expect more euro weakness and yen strength however the recent political turmoil in Japan has turned the yen-as-a-risk-barometer on its head," comments Raghee Horner, chief currency analyst for IBFX.
From a technical standpoint, Ms. Horner says the following: "I'm sure plenty of bears looked for the EURJPY to sink back through 102.00 (it couldn't) and now with 104.00 acting as near-term term resistance, bears will once again look for the pair to sink lower through 103.50."
Also, worthy of note, the market appears to have stalled at a rising trendline (previously support) measured from the trough of July 24 to that of Aug 2, and spot now holds steady just below the trendline. If the bullish momentum for EURJPY extends in the session ahead, the next bullish target lies at 104.60 (Oct 23 high); a push above there would then target 105.70 (March 6 low). The Nov 7 peak at 103.40 offers immediate support on dips, then 102.77 (Oct 5 high).
"In the current fiscal cliff/risk averse/continued Greece and Spain concerned- environment I would expect more euro weakness and yen strength however the recent political turmoil in Japan has turned the yen-as-a-risk-barometer on its head," comments Raghee Horner, chief currency analyst for IBFX.
From a technical standpoint, Ms. Horner says the following: "I'm sure plenty of bears looked for the EURJPY to sink back through 102.00 (it couldn't) and now with 104.00 acting as near-term term resistance, bears will once again look for the pair to sink lower through 103.50."
Also, worthy of note, the market appears to have stalled at a rising trendline (previously support) measured from the trough of July 24 to that of Aug 2, and spot now holds steady just below the trendline. If the bullish momentum for EURJPY extends in the session ahead, the next bullish target lies at 104.60 (Oct 23 high); a push above there would then target 105.70 (March 6 low). The Nov 7 peak at 103.40 offers immediate support on dips, then 102.77 (Oct 5 high).
Free Annual Reports
