3 Sep 2013
EUR/JPY on an absolute tear early this week as global investors seek risk / flee safety
FXstreet.com (Barcelona) - It seems that the EUR/JPY is being utilized – along with AUD/JPY – as a risk proxy for liquidity-seeking global investors / traders. Early this week, risk is “on” and EUR/JPY is up.
EUR/JPY blows off “iffy” German data from Monday - rising as the Yen is shunned
Perhaps it was the lack of an attack by the US over the weekend or better Chinese PMI numbers before the open on Sunday – whatever the reason, equity futures were flying coming into this week and have not as of yet given any of that upside back. With US markets closed on Monday, global traders had to find ways to add risk exposure without actually buying stocks – hence the upside in EURJPY and AUDJPY. It didn’t even matter that the data Monday out of Europe – and specifically Germany – was not overly bullish… the cross ripped higher anyway.
Technical outlook for EUR/JPY
Looking specifically at EUR/JPY, technicians feel it will work its way up to 132.41 before the bulls really have anything to worry about. Support comes in at 130.50 (horizontal line) and 129.29 (Friday’s low).
EUR/JPY blows off “iffy” German data from Monday - rising as the Yen is shunned
Perhaps it was the lack of an attack by the US over the weekend or better Chinese PMI numbers before the open on Sunday – whatever the reason, equity futures were flying coming into this week and have not as of yet given any of that upside back. With US markets closed on Monday, global traders had to find ways to add risk exposure without actually buying stocks – hence the upside in EURJPY and AUDJPY. It didn’t even matter that the data Monday out of Europe – and specifically Germany – was not overly bullish… the cross ripped higher anyway.
Technical outlook for EUR/JPY
Looking specifically at EUR/JPY, technicians feel it will work its way up to 132.41 before the bulls really have anything to worry about. Support comes in at 130.50 (horizontal line) and 129.29 (Friday’s low).