Back
1 Nov 2013
EUR/JPY getting hammered as stops are creating snowball effect; 132.77 is short-term support
FXstreet.com (Barcelona) - Analysts are searching for reasons behind the very sharp sell-off in the EUR/JPY, but there seems only to be guesses and speculation at this point. Technical forces seem to be as much to blame as anything.
EUR/JPY traders will need to rely on technicals as scheduled data has dried up for the week
Barring some unforeseen / unscheduled surprises, the data flow that would directly affect the EUR/JPY is done for the week – yet the cross is trading off as if something is seriously wrong (perhaps that has yet to be announced / released). Hopefully for those bullish of risk assets in general and of EUR/JPY, this is just a move based purely on technical drivers and computer programs’ stop losses being triggered.
Technical outlook for EUR/JPY
Elliott Wave technicians see the EUR/JPY in the midst of a multi-day correction lower with a downside target of 132.77. That level, if broken, would be followed bearishly by Fibonacci projections at 132.05 and 131.60. Resistance for the cross comes in at Fibonacci retracements of the Thursday decline at 133.27 and 133.68.
EUR/JPY traders will need to rely on technicals as scheduled data has dried up for the week
Barring some unforeseen / unscheduled surprises, the data flow that would directly affect the EUR/JPY is done for the week – yet the cross is trading off as if something is seriously wrong (perhaps that has yet to be announced / released). Hopefully for those bullish of risk assets in general and of EUR/JPY, this is just a move based purely on technical drivers and computer programs’ stop losses being triggered.
Technical outlook for EUR/JPY
Elliott Wave technicians see the EUR/JPY in the midst of a multi-day correction lower with a downside target of 132.77. That level, if broken, would be followed bearishly by Fibonacci projections at 132.05 and 131.60. Resistance for the cross comes in at Fibonacci retracements of the Thursday decline at 133.27 and 133.68.