Back
17 Sep 2013
EUR/JPY soars on surging ZEW data
FXstreet.com (Athens)- The EUR/JPY is moving steadily upwards since the ZEW data released.
EUR/JPY soaring as ZEW survey data surged to their best output since 2009
The EUR/JPY is trading higher mainly due to the fact that the single currency was heavily lifted after the release of the ZEW data. Traders should bear in mind that ZEW is one of the most important leading indicators (if not the most) regarding the power horse of Euro land; thus investors, should not be taken aback by the fact that ZEW best figures since 2009, sparked optimism throughout Euro land. Indeed, signs of a stronger euro zone are looming, and that is perfectly depicted on the fact that after the release, demand for risk-assets was heavily boosted. To elaborate on, traders started to reduce the demand for safe-haven assets (that’s why European bond yields increased) and bought risky-linked assets and crosses (DAX is holding near its all-time high set yesterday).
Technical Outlook and Strategic Bias on EUR/JPY
According to Karen Jones, Head Technical Analyst of Commerzbank, “EUR/JPY has stalled at 133.37 and the divergence of the daily RSI suggests we should allow for some near term consolidation back to approximately 131.65-131.10. We are a little concerned by the price action, but will maintain an overall neutral to positive stance while above 130.67 (55 day ma) and the 129.77 3 month ma. It targets the 133.82 May high in the first instance and above it lies the 2010 peak at 134.37. Still further up sits major resistance at 137.42/139.26 where the April, May, August and October 2009 highs were all made. The triangle measures up to 141.05.”
EUR/JPY soaring as ZEW survey data surged to their best output since 2009
The EUR/JPY is trading higher mainly due to the fact that the single currency was heavily lifted after the release of the ZEW data. Traders should bear in mind that ZEW is one of the most important leading indicators (if not the most) regarding the power horse of Euro land; thus investors, should not be taken aback by the fact that ZEW best figures since 2009, sparked optimism throughout Euro land. Indeed, signs of a stronger euro zone are looming, and that is perfectly depicted on the fact that after the release, demand for risk-assets was heavily boosted. To elaborate on, traders started to reduce the demand for safe-haven assets (that’s why European bond yields increased) and bought risky-linked assets and crosses (DAX is holding near its all-time high set yesterday).
Technical Outlook and Strategic Bias on EUR/JPY
According to Karen Jones, Head Technical Analyst of Commerzbank, “EUR/JPY has stalled at 133.37 and the divergence of the daily RSI suggests we should allow for some near term consolidation back to approximately 131.65-131.10. We are a little concerned by the price action, but will maintain an overall neutral to positive stance while above 130.67 (55 day ma) and the 129.77 3 month ma. It targets the 133.82 May high in the first instance and above it lies the 2010 peak at 134.37. Still further up sits major resistance at 137.42/139.26 where the April, May, August and October 2009 highs were all made. The triangle measures up to 141.05.”