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10 Sep 2013
EUR/JPY gives up 132.00 position; reaches 131.91 bottoms
FXstreet.com (Chicago) - EUR/JPY gave up 132.00 zone after extending bearish short-term trendline as it was unable to sustain 132.20 levels at the opening of Tuesday’s session and hit 131.91 session lows.
Japanese Prime Minister Abe will make the sales tax hike announcement on October 1st and the belief of a potential sell-off if the taxes are not raised seems to be gaining advocates as Kozo Yamamoto (LDP) politician stated a failure will lead to bearish currency crush.
Price action reveals a potential double tops formation around 132.20 zone as the pair succumbed after reaching high position later last night. At 131.97, the pair navigates between supports at 131.82 (August 23rd lows), 131.52 (September 2nd highs) ahead of 131.14 (September 5th lows) and resistances at 132.20 (September 9th highs), 132.41 (August 24th highs) followed by 132.75 (July 25th highs). According to the FXstreet.com trend index, the pair is slightly bearish on one-hour timeframe despite fluctuating above the EMA20.
Japanese Prime Minister Abe will make the sales tax hike announcement on October 1st and the belief of a potential sell-off if the taxes are not raised seems to be gaining advocates as Kozo Yamamoto (LDP) politician stated a failure will lead to bearish currency crush.
Price action reveals a potential double tops formation around 132.20 zone as the pair succumbed after reaching high position later last night. At 131.97, the pair navigates between supports at 131.82 (August 23rd lows), 131.52 (September 2nd highs) ahead of 131.14 (September 5th lows) and resistances at 132.20 (September 9th highs), 132.41 (August 24th highs) followed by 132.75 (July 25th highs). According to the FXstreet.com trend index, the pair is slightly bearish on one-hour timeframe despite fluctuating above the EMA20.