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4 Jun 2013
EUR/JPY hovering over 131.00
FXstreet.com (Barcelona) - The cross continues to meander in a narrow range on Tuesday, currently clinging to the key level at 1.3100 as the euro is gathering some traction.
“Although momentum indicators and failure to hold above 132 suggest deeper retracements, price action remains painfully contained. A break of the 129.50-133 range is needed to trigger a genuine move. However, even if the break is to the downside, retracements could be minimal consolidation before JPY weakness resumes (deeper stops below 127.70)”, assessed Tim Riddell, Head of Global Markets Research at ANZ.
As of writing, the cross is losing 0.53% at 130.86 and a breach of 129.94 (low Jun.4) would open the door to 129.49 (low Jun.3) and finally 129.29 (hourly lows May 8). On the flip side, up barriers line up at 131.40 (high Jun.4) ahead of 132.08 (high May 31) and then 132.15 (high May 28).
“Although momentum indicators and failure to hold above 132 suggest deeper retracements, price action remains painfully contained. A break of the 129.50-133 range is needed to trigger a genuine move. However, even if the break is to the downside, retracements could be minimal consolidation before JPY weakness resumes (deeper stops below 127.70)”, assessed Tim Riddell, Head of Global Markets Research at ANZ.
As of writing, the cross is losing 0.53% at 130.86 and a breach of 129.94 (low Jun.4) would open the door to 129.49 (low Jun.3) and finally 129.29 (hourly lows May 8). On the flip side, up barriers line up at 131.40 (high Jun.4) ahead of 132.08 (high May 31) and then 132.15 (high May 28).