25 Oct 2013
EUR/JPY sliding on hot Japanese inflation data early Friday; European data to follow
FXstreet.com (Barcelona) - Some unexpectedly high inflation data from Japan early Friday was obviously Yen-bullish and has caused the EUR/JPY to correct lower early Friday.
EUR/JPY traders will also need to account for European data
The EUR/JPY may have reacted bearishly to the hot inflation data out of Japan, but if recent trends hold up, the European data flow may very well come out bullish as well – potentially offsetting the effect of the Japanese CPI news. The expected data out of Europe includes the EU Council Meeting, German Business Expectations and the German Current Assessment.
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 Thursday’s high of 134.78 and Tuesday’s peak of 135.49.
EUR/JPY traders will also need to account for European data
The EUR/JPY may have reacted bearishly to the hot inflation data out of Japan, but if recent trends hold up, the European data flow may very well come out bullish as well – potentially offsetting the effect of the Japanese CPI news. The expected data out of Europe includes the EU Council Meeting, German Business Expectations and the German Current Assessment.
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 Thursday’s high of 134.78 and Tuesday’s peak of 135.49.