3 Sep 2013
EUR/JPY is offered towards lows
FXstreet.com (London) - EUR/JPY has dropped through 131.00 the figure and is continuing towards the low 130.65. The high has been 131.51.
The number of potential triggers for EUR weakness and a partial European relapse appears to be growing, against a backdrop of persistent underlying issues which have been points of concern for us right the way through,” said Stephen Gallo, Head of FX Strategy at BMO. While, in Japan, the data was mixed. Marc Chandler, at BBH Global Currency Strategy Team explains, “The monetary base is exploding under QE and is up 42% year-over-year and wage earnings rose 0.4% in July. However, there was weakness there below the surface. Base wages were off 0.4% and the June figure was revised to -0.6% from -0.1% initially. Yesterday's capex figures point to an upward revision in Q2 GDP when released next week, but now the word is that Prime Minister Abe wants to wait for the next Tankan report to make a formal announcement.
EUR/JPY 127.97 august low on the cards
Axel Rudolph, Senior Technical Analyst said, “A drop through 129.28, the August 20 low, will put the four month support line at 129.12 and the current 127.97 August low on the cards and, if slipped through, should see follow through losses to 126.57, the June 26 low. This is regarded as the last defence for the 124.94 June low which is our downside target for the weeks to come. Should last week’s high at 132.42 be bettered, however, the 132.74 July high will be back in the frame.
The number of potential triggers for EUR weakness and a partial European relapse appears to be growing, against a backdrop of persistent underlying issues which have been points of concern for us right the way through,” said Stephen Gallo, Head of FX Strategy at BMO. While, in Japan, the data was mixed. Marc Chandler, at BBH Global Currency Strategy Team explains, “The monetary base is exploding under QE and is up 42% year-over-year and wage earnings rose 0.4% in July. However, there was weakness there below the surface. Base wages were off 0.4% and the June figure was revised to -0.6% from -0.1% initially. Yesterday's capex figures point to an upward revision in Q2 GDP when released next week, but now the word is that Prime Minister Abe wants to wait for the next Tankan report to make a formal announcement.
EUR/JPY 127.97 august low on the cards
Axel Rudolph, Senior Technical Analyst said, “A drop through 129.28, the August 20 low, will put the four month support line at 129.12 and the current 127.97 August low on the cards and, if slipped through, should see follow through losses to 126.57, the June 26 low. This is regarded as the last defence for the 124.94 June low which is our downside target for the weeks to come. Should last week’s high at 132.42 be bettered, however, the 132.74 July high will be back in the frame.