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8 Oct 2013
EUR/JPY works off extreme oversold by bouncing for most of this session; resistance 131.58
FXstreet.com (Barcelona) - The EUR/JPY has bounced higher for most of the Tuesday session thus far. But, unless 131.58 is eclipsed on an hourly close, the downside momentum may resume.
EUR/JPY bouncing modestly along with global equities
During European hours, traders will get the German Trade Balance and German Factory Orders data which may influence the EUR/JPY. Overall, though, look to the EUR/JPY to continue to be used by institutions as a proxy for the “risk trade”.
Technical outlook for EUR/JPY
Technicians say that 131.58 for EUR/JPY will need to be eclipsed on an hourly closing basis to open up any more upside potential for the short-term. Ultimate targets remain far lower – down at 130.83 and 130.30 – both Fibonacci targets. Resistance for the cross above 131.58 comes in at Thursday’s close of 132.44.
EUR/JPY bouncing modestly along with global equities
During European hours, traders will get the German Trade Balance and German Factory Orders data which may influence the EUR/JPY. Overall, though, look to the EUR/JPY to continue to be used by institutions as a proxy for the “risk trade”.
Technical outlook for EUR/JPY
Technicians say that 131.58 for EUR/JPY will need to be eclipsed on an hourly closing basis to open up any more upside potential for the short-term. Ultimate targets remain far lower – down at 130.83 and 130.30 – both Fibonacci targets. Resistance for the cross above 131.58 comes in at Thursday’s close of 132.44.