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May 27, 2013
EUR/JPY cracks 131.00 support, more downside to follow?
The EUR/JPY finished the session down 107 pips at 130.82, closing below the 20dma (130.87) for the first since early May.
Governor Kuroda was set to speak at the Japan Society of Monetary Economists over the weekend, which many analysts were looking too for details given the recent volatility in the Japanese equity and bond markets. According to analysts at NAB, “Japan had another wild ride on Friday managing a 7% intra-day range for the Nikkei, being up 3½% earlier after its 7% plunge Thursday, ,then slumped to be down 3½ before recovering to close up 0.9%. Speaking over the weekend, BoJ Kuroda gave Japanese asset market/ economy bulls more encouragement, saying that there was no sign investors have excessively bullish expectations in asset markets or in activities of financial institutions."
The FXStreet.com Trend Index remains slightly bearish on the daily chart, while the OB/OS index reads neutral. Short term moving averages are in neutral set up, with price consolidating between the 9 and 20 dma’s. The RSI (14) remains in bullish set up on the daily chart, consolidating between the 40 and 80 range. Initial support sits at 130.00 (low price area from previous two days), while first resistance sits at 131.78 (the 9dma).
Governor Kuroda was set to speak at the Japan Society of Monetary Economists over the weekend, which many analysts were looking too for details given the recent volatility in the Japanese equity and bond markets. According to analysts at NAB, “Japan had another wild ride on Friday managing a 7% intra-day range for the Nikkei, being up 3½% earlier after its 7% plunge Thursday, ,then slumped to be down 3½ before recovering to close up 0.9%. Speaking over the weekend, BoJ Kuroda gave Japanese asset market/ economy bulls more encouragement, saying that there was no sign investors have excessively bullish expectations in asset markets or in activities of financial institutions."
The FXStreet.com Trend Index remains slightly bearish on the daily chart, while the OB/OS index reads neutral. Short term moving averages are in neutral set up, with price consolidating between the 9 and 20 dma’s. The RSI (14) remains in bullish set up on the daily chart, consolidating between the 40 and 80 range. Initial support sits at 130.00 (low price area from previous two days), while first resistance sits at 131.78 (the 9dma).