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20 Sep 2013
EUR/JPY rages higher Thursday as overall “risk on” attitude takes hold
FXstreet.com (Barcelona) - Even though the equity indices were fairly quiet Thursday, there is a clear shift going on from neutral / risk-off to bullish / risk-on. Part of that involves an obvious revving up of the carry trade - and a flow of buyers into EUR/JPY.
EUR/JPY, as a risk gauge, is flashing green lights for the bulls
Traders continued to buy up the EUR/JPY as a liquid way of adding risk exposure in what otherwise was a quiet trading day globally. Some managers are trying to play catch up with the indices after being neutral to bearishly-positioned yesterday ahead of the FOMC’s global shocker. When they saw the equity action was going to be muted consolidation at best, they had to look elsewhere for catch-up returns.
The other contributing factor to the ramp in EUR/JPY was the Bank of Japan’s member Kiuchi – who is known for his normally hawkish attitude - suddenly sounding more dovish.
Technical outlook for EUR/JPY
Technicians say EUR/JPY blew through previous resistance and ran all the way up to the next possible temporary stopping point at 134.75 before showing any signs of resting. They say a pullback here should not be too severe – perhaps only reaching 133.17 on the downside – and that dips should (barring unforeseen events) be buyable for the time being.
EUR/JPY, as a risk gauge, is flashing green lights for the bulls
Traders continued to buy up the EUR/JPY as a liquid way of adding risk exposure in what otherwise was a quiet trading day globally. Some managers are trying to play catch up with the indices after being neutral to bearishly-positioned yesterday ahead of the FOMC’s global shocker. When they saw the equity action was going to be muted consolidation at best, they had to look elsewhere for catch-up returns.
The other contributing factor to the ramp in EUR/JPY was the Bank of Japan’s member Kiuchi – who is known for his normally hawkish attitude - suddenly sounding more dovish.
Technical outlook for EUR/JPY
Technicians say EUR/JPY blew through previous resistance and ran all the way up to the next possible temporary stopping point at 134.75 before showing any signs of resting. They say a pullback here should not be too severe – perhaps only reaching 133.17 on the downside – and that dips should (barring unforeseen events) be buyable for the time being.