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19 Aug 2013
EUR/JPY soars across the board on dismal Japanese trade balance
FXstreet.com (Athens) - EUR/JPY is trading at 130.65, up 0.38%, due to disappointing Japanese trade data released overnight.
The Japanese trade balance data overnight recorded its biggest ever deficit on record for the month of July as the weaker Yen kept exports high, but imports rocketed as demand for fuel increased during the summer months. Investors were let down as they were looking on signs that the weaker yen of the past 8 months is starting to feed through into better trade numbers. On the other hand, the single currency was also boosted by the inflation data released on Friday, which showed that the headline rate was steady at 1.6% (i.e. sixth consecutive month inflation was below the ECB’s 2% threshold).
The FXstreet.com Trend Index shows the pair to be strongly bearish. Daily pivot point support and resistance can be found at S3:129.03 S2:128.71 S1:128.39 R1:130.80 R2:131.10 R3:131.10
The Japanese trade balance data overnight recorded its biggest ever deficit on record for the month of July as the weaker Yen kept exports high, but imports rocketed as demand for fuel increased during the summer months. Investors were let down as they were looking on signs that the weaker yen of the past 8 months is starting to feed through into better trade numbers. On the other hand, the single currency was also boosted by the inflation data released on Friday, which showed that the headline rate was steady at 1.6% (i.e. sixth consecutive month inflation was below the ECB’s 2% threshold).
The FXstreet.com Trend Index shows the pair to be strongly bearish. Daily pivot point support and resistance can be found at S3:129.03 S2:128.71 S1:128.39 R1:130.80 R2:131.10 R3:131.10