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21 Jun 2013
EUR/JPY advances capped below 130.00
FXstreet.com (Barcelona) - After trading as high as 129.90, the EUR/JPY was unable to hold onto the majority of its gains but managed to close up 68 pips at 128.71.
European PMI data surprises to upside
Analysts at Rabobank discussed the release of the EU PMI’s which hit the tape earlier in the day. “The suite of eurozone PMIs added little to what we already know. The Manufacturing PMI ticked higher to 48.7 in June from May’s 48.3. June’s reading remains sub-50 but is the highest since August 2011.” In going to discuss more about the figures, Rabobank added, “The Services PMI gained to 48.6 from May’s 47.2. This is the equal highest reading since March 2012.” In conclusion, Rabobank went on to add these developments, along with a few other releases show the economy is slowly recovering towards eventual GDP growth.
Short term technicals remain slightly bearish
Val Bednarik, Chief Analyst at FXstreet.com provided some thoughts on the recent price action in the EUR/JPY. “Yen bears were in control most of this Thursday, with the EUR/JPY reaching a daily high of 129.89 before succumbing to stocks negative momentum: the pair lost near 150 pips in a blink, and now struggles to regain the 128.80 area" addes Bednarik. In conclusion, Bednarik went on to note, "The hourly chart shows indicators still heading lower near their midlines, while 100 SMA approaches to 200 one, both in the 127.40/60 area, acting as short term support. Risk to the downside however increases, with Asian share markets probably opening in red after US developments.”
European PMI data surprises to upside
Analysts at Rabobank discussed the release of the EU PMI’s which hit the tape earlier in the day. “The suite of eurozone PMIs added little to what we already know. The Manufacturing PMI ticked higher to 48.7 in June from May’s 48.3. June’s reading remains sub-50 but is the highest since August 2011.” In going to discuss more about the figures, Rabobank added, “The Services PMI gained to 48.6 from May’s 47.2. This is the equal highest reading since March 2012.” In conclusion, Rabobank went on to add these developments, along with a few other releases show the economy is slowly recovering towards eventual GDP growth.
Short term technicals remain slightly bearish
Val Bednarik, Chief Analyst at FXstreet.com provided some thoughts on the recent price action in the EUR/JPY. “Yen bears were in control most of this Thursday, with the EUR/JPY reaching a daily high of 129.89 before succumbing to stocks negative momentum: the pair lost near 150 pips in a blink, and now struggles to regain the 128.80 area" addes Bednarik. In conclusion, Bednarik went on to note, "The hourly chart shows indicators still heading lower near their midlines, while 100 SMA approaches to 200 one, both in the 127.40/60 area, acting as short term support. Risk to the downside however increases, with Asian share markets probably opening in red after US developments.”