Forex: EUR/JPY retraces weekly losses
Forex pairs in this Article »
EUR/JPY
FXstreet.com (Barcelona) - Improved risk sentiment is pushing the EURJPY higher despite the general weakness in November. President Barack Obama was re-elected and also triggered a rally on Gold and bonds. The European session saw a concerning Spanish industrial output, an annualized contraction of -7.0% in September, and a monthly fall in EMU retail sales once again.
Retail Sales in the Eurozone fell again by -0.2% in September (consensus of -0.1%), but the annualized figure improved from -0.9% (revised from -1.3%) to -0.8%, beating a consensus of -1.0%. Eurostat points to fuel economization as the biggest drag. In early Asian session, the value of the JP foreign reserves was revealed, mounting to a total of Y 1274.2B in October, from Y 1277B in the prior month.
Today's EURJPY upside reached as high as 103.42 and is currently trading at 103.26, past this week's opening price and meaning the cross was able to fully retrace weekly losses and now attempts at gains.
"The rebound from here (102.19) suggests another run up to the 104.69/82 resistance is plausible", wrote Comerzbank analyst Karen Jones, expecting that level to cap the EURJPY. "Intraday charts are currently indicating that the market will struggle between here and 104.00", Jones added, pointing to 100.15 then 99.50 (mid September low) if the cross fails to hold the trend line at 102.19 and 200 day ma at 102.16.
Retail Sales in the Eurozone fell again by -0.2% in September (consensus of -0.1%), but the annualized figure improved from -0.9% (revised from -1.3%) to -0.8%, beating a consensus of -1.0%. Eurostat points to fuel economization as the biggest drag. In early Asian session, the value of the JP foreign reserves was revealed, mounting to a total of Y 1274.2B in October, from Y 1277B in the prior month.
Today's EURJPY upside reached as high as 103.42 and is currently trading at 103.26, past this week's opening price and meaning the cross was able to fully retrace weekly losses and now attempts at gains.
"The rebound from here (102.19) suggests another run up to the 104.69/82 resistance is plausible", wrote Comerzbank analyst Karen Jones, expecting that level to cap the EURJPY. "Intraday charts are currently indicating that the market will struggle between here and 104.00", Jones added, pointing to 100.15 then 99.50 (mid September low) if the cross fails to hold the trend line at 102.19 and 200 day ma at 102.16.
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