EUR/JPY Tests 200-D MA in Safe Haven Environment

   on November 08 2012 12:27 PM

Analyst Paul Ebeling of www.livetradingnews.com takes a look at EUR/JPY

EUR/JPY Tests 200-D MA in Safe Haven Environment

USD, EUR, JPY, GBP

The US Dollar Index made a push toward the 81 level early this morning but was quickly rejected at the level. However it was able to hold 80.80 firmly and is now making it’s way back toward 81.

The DXY has been aided by a headline that officials say a decision on Greece may be weeks away.

Economic Data in the US this morning was positive as Initial Claims came in below expectations while the Trade Balance had a lower than expected deficit.

The EUR has been testing the 1.2720 level this morning but a downward trend remains firmly in place.

The ECB met this morning with president Mario Draghi holding his press conference. But, in general it was uneventful as Mr. Draghi reiterated prior comments that growth would remain subdued and inflation risks would recede. Next month the central bank will update its economic forecasts with high expectations for them to lower their outlook.

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Spain held another successful long term bond sale today that will push back expectations of a potential bailout request.

Trade Data in France and Germany was relatively positive.

Greece passed the 1st round of votes for its budget but the 153 votes were lower than the expected 154 which is a cause for concern.

The pound made a run at the 1.60 resistance level after the Bank of England decided to leave rates and asset purchase programs unchanged. But sterling was unable to break above and hold the key level. It is currently consolidating below the level but concern in Europe will be a significant headwind in the days ahead.

The JPY has been able to hold and push off of the 80 level against the USD in the safe haven environment. The JPY is now trading at 101.50 against the EUR. The move against the EUR has been even more pronounced as it test the Key 200-Day MA at 101.88-102.14.

 

Paul A. Ebeling, Jnr.Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster’s Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.

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