FXStreet (Bali) – EUR/JPY is at a critical macro juncture around 135.00 with buyers and sellers battling for control, with the first move in Tokyo a rebound off 134.84 session low to a high of 136.10.
Nikkei keeps its head above 18k
The recovery off lows in Yen crosses comes as the Nikkei 225 finds strong buying interest off lows, after opening more than 3% lower, just ahead of the psychological 18,000 level. The negative open follows a worsening of risk conditions heading into Tokyo, as an afternoon sell-off took the SP500 into the red. In terms of economic data, Japan July machinery orders, published by the Japan Cabinet Office, disappointed at -3.6% m/m vs 3.0% exp and -7.9% prior, with the yearly at +2.8% vs 10.3% exp and 16.6% prior.
EUR/JPY technicals
Valeria Bednarik, Chief Analyst at FXStreet, notes: “Technically, the 1 hour chart shows that the price has managed to extend above its 200 SMA whilst the technical indicators are now regaining upward strength well into positive territory, supporting additional gains ahead.”
“In the 4 hours chart, the technical indicators are giving their first signs of upward exhaustion near overbought territory, but still far from suggesting a downward acceleration.In this last time frame, the pair continues trading below its 100 and 200 SMAs, which maintains further long term gains still unclear.”
In terms of levels to watch for, Valeria wrote: “The pair has an immediate resistance around 135.30, where it presents several intraday highs and lows, with a break above it now required to confirm a bullish continuation for the upcoming sessions.”
(Market News Provided by FXstreet)