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1 Sep 2015
EUR/JPY: downside opening up and tracks USD/JPY
FXStreet (Guatemala) - EUR/JPY was sent lower with a strong Yen on risk aversion at the end of the Asian shift as USDJPY collapsed through the 120.70 200 DMA.
EUR/JPY offered on poor Asian performance
EUR/JPY was caught up in the theme of risk-off markets and lower Global equities. A weak open in Tokyo was the start of it all, then the Chinese PMI's pointed to a further slowdown in the economy. The Chinese bourses opened with a bearish gap, but by the close of play, the largest stocks in China, as recorded on the SSE50, were up around 1.0% while the composite closed -1.2%. Nikkei tallied-up big losses into the closing hour and finished 450 ticks down on the lows.
EUR/JPY Asian wrap up
By the end of all this, EUR/JPY bulls had stepped aside and let the cross slip from the vicinity of the 20 and 50 SMA on the hourly sticks minute sticks as the crossed lower and diverged from 135.97 to 134.84 lows by the European open.
EUR/JPY minor recovery faded in European trade
Then, there was a minor recovery to 135.46 despite the European stocks and shares in London opening down with the UK back from a bank holiday, with the FTSE starting out -1.0%, the French Cac -1.5%, the German Dax -1.8%, the Italian Ibex -1.4%.
EUR/JPY was back on the offered while stocks all closed much lower with the FTSE -3.0%, DAX -2.6%, CAC -2.6%, IBEX -2.8%. The poor manufacturing in Europe and UK did not help, bar Germany that was slightly up on the PMI's 53.3 vs 53.2 expected for Aug. Meanwhile, August Eurozone Markit manufacturing PMI arrived 52.3 vs 52.4 exp and UK Markit CIPS manufacturing PMI arrived 51.5 vs 52.0 exp.
EUR/JPY downside levels
Further downside below currently level of 135.20 support opens 134.35, which is the 20th July low. Karen Jones, chief analyst at Commerzbank explained that failure here would open-up the possibility of a slide to key support at 133.30/10, the lows seen since May.
EUR/JPY offered on poor Asian performance
EUR/JPY was caught up in the theme of risk-off markets and lower Global equities. A weak open in Tokyo was the start of it all, then the Chinese PMI's pointed to a further slowdown in the economy. The Chinese bourses opened with a bearish gap, but by the close of play, the largest stocks in China, as recorded on the SSE50, were up around 1.0% while the composite closed -1.2%. Nikkei tallied-up big losses into the closing hour and finished 450 ticks down on the lows.
EUR/JPY Asian wrap up
By the end of all this, EUR/JPY bulls had stepped aside and let the cross slip from the vicinity of the 20 and 50 SMA on the hourly sticks minute sticks as the crossed lower and diverged from 135.97 to 134.84 lows by the European open.
EUR/JPY minor recovery faded in European trade
Then, there was a minor recovery to 135.46 despite the European stocks and shares in London opening down with the UK back from a bank holiday, with the FTSE starting out -1.0%, the French Cac -1.5%, the German Dax -1.8%, the Italian Ibex -1.4%.
EUR/JPY was back on the offered while stocks all closed much lower with the FTSE -3.0%, DAX -2.6%, CAC -2.6%, IBEX -2.8%. The poor manufacturing in Europe and UK did not help, bar Germany that was slightly up on the PMI's 53.3 vs 53.2 expected for Aug. Meanwhile, August Eurozone Markit manufacturing PMI arrived 52.3 vs 52.4 exp and UK Markit CIPS manufacturing PMI arrived 51.5 vs 52.0 exp.
EUR/JPY downside levels
Further downside below currently level of 135.20 support opens 134.35, which is the 20th July low. Karen Jones, chief analyst at Commerzbank explained that failure here would open-up the possibility of a slide to key support at 133.30/10, the lows seen since May.