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18 Sep 2013
EUR/JPY still rebounding off of key support at 131.71; expect strong reaction to FOMC
FXstreet.com (Barcelona) - One of the key global risk gauges, the EUR/JPY, remains very buoyant early Wednesday despite a pretty quiet overall environment ahead of the FOMC.
EUR/JPY, as a risk gauge, is giving the bulls the benefit of the doubt right now
EUR/JPY traders do not seem too afraid of what may happen if the Fed goes full speed with their tapering program – which has a limited but still possible chance of happening. There is no data due out in Europe or Japan during Wednesday’s session, so the EUR/JPY will be trading off of its use as a levered risk play for managers trying to add risk to or shed risk from their portfolio.
Technical outlook for EUR/JPY
Technicians say EURJPY is likely headed up to the projected upside target of 133.73 before a more substantial correction may play out. Support comes in at 131.65 – the recent pivot low from 9/13.
EUR/JPY, as a risk gauge, is giving the bulls the benefit of the doubt right now
EUR/JPY traders do not seem too afraid of what may happen if the Fed goes full speed with their tapering program – which has a limited but still possible chance of happening. There is no data due out in Europe or Japan during Wednesday’s session, so the EUR/JPY will be trading off of its use as a levered risk play for managers trying to add risk to or shed risk from their portfolio.
Technical outlook for EUR/JPY
Technicians say EURJPY is likely headed up to the projected upside target of 133.73 before a more substantial correction may play out. Support comes in at 131.65 – the recent pivot low from 9/13.