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18 Sep 2013
EUR/JPY is trading in a narrow range ahead of Mario, FOMC
FXstreet.com (Athens)- The EUR/JPY is trading at a very congested area ahead of the FOMC minutes, but also as well on political uncertainty in Italy.
EUR/JPY trading sidelines ahead of FOMC and “Berlusconi jitters”
The EUR/JPY is hovering around 132.46, at a tight 20 pips range since the early Asian opening trading session. While the European Calendar is extremely light and more than sure FX traders are mostly both focused and oriented in the FOMC decision, we should not forget the fragile Italian political backdrop. To elaborate on, today, a 23-man Senate committee is due to hold a first vote on the expulsion of Berlusconi from the Senate. What’s more, it is probable that this committee, dominated by the centre-left Democratic Party, will vote in favor of Berlusconi expulsion, i.e. Berlusconi’s party will end its coalition with the Democratic Part, thus a collapse of the government. Therefore, besides FOMC, investor should also ‘eye’ on the political developments in the Italian parliament. Needless to say, a collapse of the Italian government, might have a severe impact on the single currency and the pair itself.
Technical Outlook and Strategic Bias on EUR/JPY
According to Karen Jones, Head Technical Analyst of Commerzbank, “EUR/JPY has stalled at 133.37 and the divergence of the daily RSI suggests we should allow for some near term consolidation back to approximately 131.65-131.10. We are a little concerned by the price action, but will maintain an overall neutral to positive stance while above 130.67 (55 day ma) and the 129.77 3 month ma. It targets the 133.82 May high in the first instance and above it lies the
2010 peak at 134.37. Still further up sits major resistance at 137.42/139.26 where the April, May, August and October 2009 highs were all made. The triangle measures up to 141.05.”
EUR/JPY trading sidelines ahead of FOMC and “Berlusconi jitters”
The EUR/JPY is hovering around 132.46, at a tight 20 pips range since the early Asian opening trading session. While the European Calendar is extremely light and more than sure FX traders are mostly both focused and oriented in the FOMC decision, we should not forget the fragile Italian political backdrop. To elaborate on, today, a 23-man Senate committee is due to hold a first vote on the expulsion of Berlusconi from the Senate. What’s more, it is probable that this committee, dominated by the centre-left Democratic Party, will vote in favor of Berlusconi expulsion, i.e. Berlusconi’s party will end its coalition with the Democratic Part, thus a collapse of the government. Therefore, besides FOMC, investor should also ‘eye’ on the political developments in the Italian parliament. Needless to say, a collapse of the Italian government, might have a severe impact on the single currency and the pair itself.
Technical Outlook and Strategic Bias on EUR/JPY
According to Karen Jones, Head Technical Analyst of Commerzbank, “EUR/JPY has stalled at 133.37 and the divergence of the daily RSI suggests we should allow for some near term consolidation back to approximately 131.65-131.10. We are a little concerned by the price action, but will maintain an overall neutral to positive stance while above 130.67 (55 day ma) and the 129.77 3 month ma. It targets the 133.82 May high in the first instance and above it lies the
2010 peak at 134.37. Still further up sits major resistance at 137.42/139.26 where the April, May, August and October 2009 highs were all made. The triangle measures up to 141.05.”