7 Nov 2013
EUR/JPY amidst tight range trading ahead of ECB
FXstreet.com (Athens) – The EUR/JPY has been trading at a very congested area since the kick off of the Wellington trading session ahead of the ECB conference and to a more or less extent due to yesterday’s sharp gains.
EUR/JPY caught amidst a modest tight trading ahead of ECB
The EUR/JPY is trading softly higher the past hour at 133.35 above the 20-EMA (133.27), in a relatively serene trading session regarding the cross, at least compared with the gains and actions seen at the yesterday’s one. The EUR/JPY had little option to do in the absence of other crucial data and/or eventst, therefore as most of the JPY-complex tracked the Nikkei index (which fell slightly on Thursday due to discouraging automobile companies earnings). Ahead of, is the crucial ECB meeting, thus, the cross might sit on the fence till the European Top Bank releases its statement.
Technical Aspects on the EUR/JPY
The cross did entirely little in Thursday’s Asian trading session, holding amidst the area of 133.20-133.40, in total contradiction with yesterday’s significant short-covering cash flows. However, it is noteworthy to mention that the cross managed yesterday to close at 133.36 level, above the 133.34 handle (50% Fibonacci retracement, also October 31st low), after three successive days of failing to do so. It might be needed to continue a series of decent daily closes above that area, in order the cross to move further upwards.Karen Jones Head Technical Analyst of Commerzbank mentions that “EUR/JPY …… We regard the pattern on the market as a potential rising wedge (reversal pattern) and a weekly close below the 132.01 level should be enough to complete the pattern and introduce scope to 122.80.”
EUR/JPY caught amidst a modest tight trading ahead of ECB
The EUR/JPY is trading softly higher the past hour at 133.35 above the 20-EMA (133.27), in a relatively serene trading session regarding the cross, at least compared with the gains and actions seen at the yesterday’s one. The EUR/JPY had little option to do in the absence of other crucial data and/or eventst, therefore as most of the JPY-complex tracked the Nikkei index (which fell slightly on Thursday due to discouraging automobile companies earnings). Ahead of, is the crucial ECB meeting, thus, the cross might sit on the fence till the European Top Bank releases its statement.
Technical Aspects on the EUR/JPY
The cross did entirely little in Thursday’s Asian trading session, holding amidst the area of 133.20-133.40, in total contradiction with yesterday’s significant short-covering cash flows. However, it is noteworthy to mention that the cross managed yesterday to close at 133.36 level, above the 133.34 handle (50% Fibonacci retracement, also October 31st low), after three successive days of failing to do so. It might be needed to continue a series of decent daily closes above that area, in order the cross to move further upwards.Karen Jones Head Technical Analyst of Commerzbank mentions that “EUR/JPY …… We regard the pattern on the market as a potential rising wedge (reversal pattern) and a weekly close below the 132.01 level should be enough to complete the pattern and introduce scope to 122.80.”