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20 Jun 2013
EUR/JPY targets descending trend-line
FXstreet.com (London) - EUR/JPY has continued to move higher after an initial 100-pip spike on the hourly candle after the release of the FOMC.
EUR/JPY risk off play
Last night came the release of FOMC, when the market listened to the committee’s statement. While there were no changes to the current pace of QE, a comment was made as follows: "the downside risks to the outlook for the economy and the labor market as having diminished since the fall”, which sent the market in a ‘risk-off’ flurry again in broad based dollar rally. In all, the statement was a little more upbeat on the economy but showed little concern about inflation, except there being a more upbeat unemployment rate which might bring in a rate hike in a little closer. Data today for the pair come in the form of EZ Markit Manufacturing PMI (Jun), Markit PMI (Jun) Composite Markit Services (Jun) at 7.30GMT. EZ Consumer Confidence (14.00GMT). Earlier on, Japan’s leading economic index ticked up to 99.0 from a previous 97.7, offering yet more improvements in the economy. The market will also be monitoring the weekly Japan MoF data on portfolio flows into and out the country. Japan institutional investors have been sellers of foreign bonds and equities of late, and if this were to reverse, this could offer more impetus for the pair to continue higher. Also, Governor Haruhiko Kuroda will hold a press conference about monetary policies in Tokyo over night.
EUR/JPY targets descending trend line
With the pair initially spiked from 127.53 through the 128.10 neckline to 128.55 on the hourly candle, EUR/JPY drifted slightly lower on profit taking before advancing again steadily up to 129.41 and through key resistance areas. The pair is targeting the main descending trend line at 129.70.
EUR/JPY risk off play
Last night came the release of FOMC, when the market listened to the committee’s statement. While there were no changes to the current pace of QE, a comment was made as follows: "the downside risks to the outlook for the economy and the labor market as having diminished since the fall”, which sent the market in a ‘risk-off’ flurry again in broad based dollar rally. In all, the statement was a little more upbeat on the economy but showed little concern about inflation, except there being a more upbeat unemployment rate which might bring in a rate hike in a little closer. Data today for the pair come in the form of EZ Markit Manufacturing PMI (Jun), Markit PMI (Jun) Composite Markit Services (Jun) at 7.30GMT. EZ Consumer Confidence (14.00GMT). Earlier on, Japan’s leading economic index ticked up to 99.0 from a previous 97.7, offering yet more improvements in the economy. The market will also be monitoring the weekly Japan MoF data on portfolio flows into and out the country. Japan institutional investors have been sellers of foreign bonds and equities of late, and if this were to reverse, this could offer more impetus for the pair to continue higher. Also, Governor Haruhiko Kuroda will hold a press conference about monetary policies in Tokyo over night.
EUR/JPY targets descending trend line
With the pair initially spiked from 127.53 through the 128.10 neckline to 128.55 on the hourly candle, EUR/JPY drifted slightly lower on profit taking before advancing again steadily up to 129.41 and through key resistance areas. The pair is targeting the main descending trend line at 129.70.