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14 May 2013
Forex: EUR/JPY holding in negative territory at 131.85/87 after German ZEW
FXstreet.com (Barcelona) - The EUR/JPY downtrend has held intact after soft economic data was promptly revealed out of Germany and the EMU during European trading. The yen has continued to strengthen across the board as well Tuesday, culminating in most majors losing ground against the currency. At the time of writing, the pair is now settling at 131.85/87.
In Germany, the ZEW Survey – Economic Sentiment (May) came in at 36.4, against expectations of 38.3. In addition, the ZEW Survey – Current Situation reported 8.9 in May, vs. a projected 10.0. In the EMU, the ZEW Survey – Economic Sentiment yielded a figure of just 27.6 in May, against estimates of 39.0.
Following a movement of -0.20% off its opening, the EUR/JPY will encounter the following short-term supports at 131.66, then 131.24, and finally 130.91. Conversely, the pair is slated to face resistance at 132.41, then 132.74, and ultimately 133.16.
According to the ICN.com Analyst Team, “The EUR/JPY continues to fluctuate narrowly around 132.00 key resistance, while we spotted a bearish divergence on RSI over the four-hour and daily time intervals. Accordingly, we prefer to remain on the sidelines today as well, as we may see a downside pullback. A clear break above 132.00 may negate the divergence and force us to reconsider the bullish scenario.”
In Germany, the ZEW Survey – Economic Sentiment (May) came in at 36.4, against expectations of 38.3. In addition, the ZEW Survey – Current Situation reported 8.9 in May, vs. a projected 10.0. In the EMU, the ZEW Survey – Economic Sentiment yielded a figure of just 27.6 in May, against estimates of 39.0.
Following a movement of -0.20% off its opening, the EUR/JPY will encounter the following short-term supports at 131.66, then 131.24, and finally 130.91. Conversely, the pair is slated to face resistance at 132.41, then 132.74, and ultimately 133.16.
According to the ICN.com Analyst Team, “The EUR/JPY continues to fluctuate narrowly around 132.00 key resistance, while we spotted a bearish divergence on RSI over the four-hour and daily time intervals. Accordingly, we prefer to remain on the sidelines today as well, as we may see a downside pullback. A clear break above 132.00 may negate the divergence and force us to reconsider the bullish scenario.”