Forex: EUR/JPY overwhelmed with news
Forex pairs in this Article »
EUR/JPY
FXstreet.com (Barcelona) - The FX market has seen much volatility over European hours as reports from Greece point to a Troika closer to an agreement for debt sustainability, while the S&P downgraded three Spanish banks and put an eye on the sovereign rating, threatening an eventual downgrade to "junk" status, and Germany revealed a softening GDP in Q3 overshadowing by a surprisingly solid IFO survey despite the gloomy consensus.
The EURJPY reached an high at 106.32 ahead of the downgrade news that sent the cross down to 105.72 low, rapidly retraced on the surprising German IFO that allowed the market to go back to its highs. The EURJPY still had the chance to test the 106.00 mark for support.
The EURJPY has reached the 2009-2012 resistance line at 106.57. "As a consequence we would allow for initial failure and a slide back towards 103.64, the 23.6% retracement of the move up from the July low", wrote Commerzbank analyst Karen Jones. "Longer term we look for a move above 106.60, this would target the 108.00 April high en route to 111.43/112.08, the 2012 high and the 2009 low", Jones added.
The EURJPY reached an high at 106.32 ahead of the downgrade news that sent the cross down to 105.72 low, rapidly retraced on the surprising German IFO that allowed the market to go back to its highs. The EURJPY still had the chance to test the 106.00 mark for support.
The EURJPY has reached the 2009-2012 resistance line at 106.57. "As a consequence we would allow for initial failure and a slide back towards 103.64, the 23.6% retracement of the move up from the July low", wrote Commerzbank analyst Karen Jones. "Longer term we look for a move above 106.60, this would target the 108.00 April high en route to 111.43/112.08, the 2012 high and the 2009 low", Jones added.
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