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16 Sep 2013
EUR/JPY capped by 132.00 area on dismal Draghi comments
FXstreet.com (Athens)- The EUR/JPY was heading sidelines since the opening of Sunday’s opening trading session, but after Draghi’s comments as well as on ECB’s Praets, Merch statements, it started to plummet.
EUR/JPY plummets as Draghi Reiterates “ No Higher Rates”
The EUR/JPY is steadily losing ground since ECB’s Merch, Praets made some discouraging comments on the Euro land, but also on Draghi’s speece. Mario Draghi stated from Berlin that “ ECB can't replace governments enacting reforms” as well as “A lack of balance sheet transparency is a barrier to lending. Hopes to see strong bank resolution mechanism.” What’s more, the governor of ECB stated that “A lack of balance sheet transparency is a barrier to lending. Hopes to see strong bank resolution mechanism.” What’s more, Spain Economy Minister Guindos said “GDP will rise, but Spain's crisis isn't over.”
Technical Outlook and Strategic Bias on EUR/JPY
According to Karen Jones, Head Technical Analyst of Commerzbank, “EUR/JPY has stalled at 133.37 and the divergence of the daily RSI suggests we should allow for some near term consolidation back to approximately 131.65-131.10. We are a little concerned by the price action, but will maintain an overall neutral to positive stance while above 130.67 (55 day ma) and the 129.77 3 month ma. It targets the 133.82 May high in the first instance and above it lies the 2010 peak at 134.37. Still further up sits major resistance at 137.42/139.26 where the April, May, August and October 2009 highs were all made. The triangle measures up to 141.05.”
EUR/JPY plummets as Draghi Reiterates “ No Higher Rates”
The EUR/JPY is steadily losing ground since ECB’s Merch, Praets made some discouraging comments on the Euro land, but also on Draghi’s speece. Mario Draghi stated from Berlin that “ ECB can't replace governments enacting reforms” as well as “A lack of balance sheet transparency is a barrier to lending. Hopes to see strong bank resolution mechanism.” What’s more, the governor of ECB stated that “A lack of balance sheet transparency is a barrier to lending. Hopes to see strong bank resolution mechanism.” What’s more, Spain Economy Minister Guindos said “GDP will rise, but Spain's crisis isn't over.”
Technical Outlook and Strategic Bias on EUR/JPY
According to Karen Jones, Head Technical Analyst of Commerzbank, “EUR/JPY has stalled at 133.37 and the divergence of the daily RSI suggests we should allow for some near term consolidation back to approximately 131.65-131.10. We are a little concerned by the price action, but will maintain an overall neutral to positive stance while above 130.67 (55 day ma) and the 129.77 3 month ma. It targets the 133.82 May high in the first instance and above it lies the 2010 peak at 134.37. Still further up sits major resistance at 137.42/139.26 where the April, May, August and October 2009 highs were all made. The triangle measures up to 141.05.”