20 Nov 2013
EUR/JPY spikes to fresh highs, 136.00 next
FXstreet.com (Barcelona) - EUR/JPY has been able to make marginal new cycle highs after pushing above 135.30/40 resistance area and closing near its highs at 135.70 on the daily. Currently, a spike has taken the rate to 135.90.
Whether this upmove is sustained or not in the next hours/ session ahead, it will largely depend on the Nikkei performance first, and later on the day, on the ability of traders to maintain risk bids for a potential test of 139.00/140.00 in what has been a move driven by broad-based yen weakness.
Note that if EUR/JPY is able to close on a monthly basis above 135.37, a bullish signal for a potential multi-month extension might be given as the monthly cloud would be broken for the first time since Jan 2003.
On the short term, "the hourly chart shows indicators slightly exhausted in overbought territory, with the 4 hours chart showing a positive tone that supports further gains beyond 136.00" notes Valeria Bednarik, Chief Analyst at FXstreet.com.
Whether this upmove is sustained or not in the next hours/ session ahead, it will largely depend on the Nikkei performance first, and later on the day, on the ability of traders to maintain risk bids for a potential test of 139.00/140.00 in what has been a move driven by broad-based yen weakness.
Note that if EUR/JPY is able to close on a monthly basis above 135.37, a bullish signal for a potential multi-month extension might be given as the monthly cloud would be broken for the first time since Jan 2003.
On the short term, "the hourly chart shows indicators slightly exhausted in overbought territory, with the 4 hours chart showing a positive tone that supports further gains beyond 136.00" notes Valeria Bednarik, Chief Analyst at FXstreet.com.