26 Sep 2013
EUR/JPY soars as as Nikkei cracks the 14,500
FXstreet.com (Athens) – The EUR/JPY is trading on the upper level today, but the last couple of hours seems that the pair losing its uptrend steam.
The EUR/JPY is tracking all the Japanese crosses since the start of the day, thus it is moving higher due to the sharp Nikkei gains (+1.22%) and to a major extent, to the tax cut speculation chattering across the globe. Earlier, news wires said that "Japanese government will study a corporate tax cut and advise public pension funds to raise allocations of risk assets". Earlier, there were some Euro zone data releases regarding the money supply in Euro land and the consumer confidence, that dragged down the pair. Elaborating on, data revealed that the annual growth rate of loans to the private sector originated by banks fell from -1.4% in July to a new record low of -1.5% in August. In addition, the net monthly flow of loans to the private sector remained negative at €-8bn.
Technical Outlook and Strategic Bias on EUR/JPY
Gareth Berry Strategist in UBS suggests that “As bullish conditions persist, resistance focus is at
134.95, a break above this would open the critical 138.49. Support is at
132.69 ahead of 131.61.”
The EUR/JPY is tracking all the Japanese crosses since the start of the day, thus it is moving higher due to the sharp Nikkei gains (+1.22%) and to a major extent, to the tax cut speculation chattering across the globe. Earlier, news wires said that "Japanese government will study a corporate tax cut and advise public pension funds to raise allocations of risk assets". Earlier, there were some Euro zone data releases regarding the money supply in Euro land and the consumer confidence, that dragged down the pair. Elaborating on, data revealed that the annual growth rate of loans to the private sector originated by banks fell from -1.4% in July to a new record low of -1.5% in August. In addition, the net monthly flow of loans to the private sector remained negative at €-8bn.
Technical Outlook and Strategic Bias on EUR/JPY
Gareth Berry Strategist in UBS suggests that “As bullish conditions persist, resistance focus is at
134.95, a break above this would open the critical 138.49. Support is at
132.69 ahead of 131.61.”