EUR/JPY making a minor recovery
FXStreet (Guatemala) – EUR/JPY downside is favoured while trading below the 200 DMA at 136.05.
Global uncertainties keep the Yen underpinned on expectations of further volatility in the global equities, at the same time, the ECB has left the door wide-open for additional QE this year while the growth and inflation outlook was downgraded as well.
Equities in China opened again after a four session break and the Shanghai Composite was closing down 2.32% by end of trade after a volatile session. In Asia, the MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1 percent, driven by the losses in China, supporting Yen.
EUR/JPY and correlation to equities
European indexes however, opened with a positive tone that prevails, despite European data has been poor. The London session maintained the positive tone of the European bourses, where Germany’s DAX was up 0.5 percent at 10,094 points and France’s CAC 40 was up 0.4 percent at 4,542 points , both halving their opening gains. Lifted by mining and commodities giant Glencore, the benchmark FTSE 100 index was up 0.52% at 6,074.52, having been as much as 1.3% higher at the start. Elsewhere, data in Europe, German Industrial Production was up in July 0.7% versus expectations of a 1.0% advance and June figures were also revised to -0.9%.
EUR/JPY: minor recovery up through hourly 50 SMA
Technically, EUR/JPY’s recent minor recovery back onto the 133 handle relieves immediate downside pressure that has been accumulated below the 200 SMA on the hourly and contained by the resistance of the 50 SMA which has been broken at 133.01.
Otherwise, closes in the 133 handle exposes 127.39 on the downside, according to Karen Jones at Commerzbank. “Initial support will be the 131.80 then 129.28 Fibonacci retracements of the move seen this year.”
EUR/JPY downside is favoured while trading below the 200 DMA at 136.05.
(Market News Provided by FXstreet)