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6 Feb 2013
Forex: EUR/JPY trades lower in Europe, capped at 127.70
Despite the Yen selloff during the Asian shift that allowed a move to 127.70 high, the EUR is weaker too and overshadowed the JPY selloff, pushing the EUR/JPY lower on the day. The cross has reached as low as 126.53 ahead of the European session, but has just bounced back to the 127.00 mark (-0.15% on the day).
BoJ's Sato called for a new level of action to reach the 2% inflation target, focused on a kind of monetary policy able to affect exchange rates.
Investors will be eyeing German Factory Orders data. Consensus points to a 0.9% rise in December, but an annualized drop from -1.0% to -1.2%.
UBS analysts are bullish on the EUR/JPY: “There is scope for extension of the uptrend. Near-term resistance is at 126.97, a break above would open 127.92 and then 132.05”, wrote analyst Gareth Berry, pointing to support at 122.01.
BoJ's Sato called for a new level of action to reach the 2% inflation target, focused on a kind of monetary policy able to affect exchange rates.
Investors will be eyeing German Factory Orders data. Consensus points to a 0.9% rise in December, but an annualized drop from -1.0% to -1.2%.
UBS analysts are bullish on the EUR/JPY: “There is scope for extension of the uptrend. Near-term resistance is at 126.97, a break above would open 127.92 and then 132.05”, wrote analyst Gareth Berry, pointing to support at 122.01.