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28 Nov 2013
Flash: EUR/JPY targets 141.00, 145.00 - ANZ
FXstreet.com (Barcelona) - EUR/JPY has opened up next target of 141.00 ahead of potential moves towards channel resistance circa 145.00 and a measured move of 155.50-75, notes Tim Riddell Head of Global Markets Research at ANZ.
Key Quotes
"Although weekly momentum could be seen as diverging (momentum indicators are not as high as they were when EUR/JPY hit 132.00 back in early 2013), the indicators are still supportive of current price action given that they appear to have found an interim base and are now rising neatly."
"The break below rising (wedge-like) support at 132.30 proved to be short-lived, holding the interim low of 131.25, and by so doing ratified the bias that a break of a wedge loses power as the wedge “ages” or approaches its apex."
"The relative dynamism of the current rebounds through 135.00 underscore the bias that JPY weakness is on the verge of becoming a key feature into 2014. Interim dips should hold above 135.00 (ideally above 135.95) in order to maintain the potential for an early drive through the next resistance levels of 138.50 and 141.00 towards a target of 145.00."
Key Quotes
"Although weekly momentum could be seen as diverging (momentum indicators are not as high as they were when EUR/JPY hit 132.00 back in early 2013), the indicators are still supportive of current price action given that they appear to have found an interim base and are now rising neatly."
"The break below rising (wedge-like) support at 132.30 proved to be short-lived, holding the interim low of 131.25, and by so doing ratified the bias that a break of a wedge loses power as the wedge “ages” or approaches its apex."
"The relative dynamism of the current rebounds through 135.00 underscore the bias that JPY weakness is on the verge of becoming a key feature into 2014. Interim dips should hold above 135.00 (ideally above 135.95) in order to maintain the potential for an early drive through the next resistance levels of 138.50 and 141.00 towards a target of 145.00."