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5 Aug 2013
EUR/JPY sinking deeply
FXstreet.com (Chicago) - EUR/JPY dipped below immediate support at 130.28 as yen strengthened and European manufacturing data remained negative.
Earlier in Japan, despite disappointing corporate earnings pulling the Nikkei down to 1.44%, the yen strengthened against the majors throughout Monday. In Europe, retail sales data outperformed projections but remain in the negatives with a notable -0.9% (YoY) vs. projected -1.2% and previous 0.3%.
Technically speaking, the immediate support at 130.26 (July 19 lows) was broken as the pair traded at 130.25 ahead of 130.05 (July 25 lows) and 129.73 (July 9 lows). On the upside, resistances were set at 130.50 (July 30 highs), 130.69 (July 16 highs) and 130.97 (May 31 highs). The FXstreet trend index reported the pair as strongly bearish as it accumulated 0.89% losses on Monday and navigated below short and long term moving averages. Both the MACD and CCI indicators pointed down.
Earlier in Japan, despite disappointing corporate earnings pulling the Nikkei down to 1.44%, the yen strengthened against the majors throughout Monday. In Europe, retail sales data outperformed projections but remain in the negatives with a notable -0.9% (YoY) vs. projected -1.2% and previous 0.3%.
Technically speaking, the immediate support at 130.26 (July 19 lows) was broken as the pair traded at 130.25 ahead of 130.05 (July 25 lows) and 129.73 (July 9 lows). On the upside, resistances were set at 130.50 (July 30 highs), 130.69 (July 16 highs) and 130.97 (May 31 highs). The FXstreet trend index reported the pair as strongly bearish as it accumulated 0.89% losses on Monday and navigated below short and long term moving averages. Both the MACD and CCI indicators pointed down.