Forex: EUR/JPY rallies to new 7-month highs on both euro and yen
Forex pairs in this Article »
EUR/JPY
FXstreet.com (Barcelona) - The EURJPY today is a combo of a strengthening currency (euro) and a weakening one (Yen) as the month ends this Friday and FX flows allowed more than 100 pips range already, with the pair hitting its high at 107.63, a new 7-month high as November gains get extended.
The Yen remains suggestive to an agressive BoJ, aiming at 1% inflation, or even 2% in case LDP's Shinzo Abe wins the Dec-16 election in Japan. Meanwhile in Europe, ECB's Draghi spoke in early European hours, expecting EZ recovery in H2 2013 and defended that the unified supervision must apply to all banks to avoid banking sector fragmentation.
Japan economic calendar shows a jump in yearly based Construction Orders in October, from 3.6% to 29.1%. Housing Starts jumped from 15.5% to 25.2%, instead of easing to 10.1% as expected. Vehicle Production stayed contracting at -12.4%.
Germany saw its retail sales data released, improving from -3.4% to -0.8% (YoY) in October, although estimates were pointing to +1.2% growth. The monthly change was quite disappointing at -2.8% (consensus of -0.2%). In France, consumer spending fell -0.2% and PPI rose +0.5% in October (MoM).
"Initial resistance lies at 107.73/108.00, this is the 78.6% retracement and the April high - we
would like to see a close above here to confirm upside intent", wrote Commerzbank analyst Karen Jones, pointing to initial support at 104.59 (October peak) ahead of 103.64 (23.6% retracement of the move up from the July low). "Beyond this, our overall target is 111.43/112.08, the 2012 high and the 2009 low", Jones added.
The Yen remains suggestive to an agressive BoJ, aiming at 1% inflation, or even 2% in case LDP's Shinzo Abe wins the Dec-16 election in Japan. Meanwhile in Europe, ECB's Draghi spoke in early European hours, expecting EZ recovery in H2 2013 and defended that the unified supervision must apply to all banks to avoid banking sector fragmentation.
Japan economic calendar shows a jump in yearly based Construction Orders in October, from 3.6% to 29.1%. Housing Starts jumped from 15.5% to 25.2%, instead of easing to 10.1% as expected. Vehicle Production stayed contracting at -12.4%.
Germany saw its retail sales data released, improving from -3.4% to -0.8% (YoY) in October, although estimates were pointing to +1.2% growth. The monthly change was quite disappointing at -2.8% (consensus of -0.2%). In France, consumer spending fell -0.2% and PPI rose +0.5% in October (MoM).
"Initial resistance lies at 107.73/108.00, this is the 78.6% retracement and the April high - we
would like to see a close above here to confirm upside intent", wrote Commerzbank analyst Karen Jones, pointing to initial support at 104.59 (October peak) ahead of 103.64 (23.6% retracement of the move up from the July low). "Beyond this, our overall target is 111.43/112.08, the 2012 high and the 2009 low", Jones added.
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