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6 May 2013
Forex: EUR/JPY retests Friday’s close but stays above 130.00
FXstreet.com (Barcelona) - After extending gains above Friday’s high of 130.34, peaking at 130.41, the market took profits and the EUR/JPY was pulled back throughout the European session and retested Friday’s close at 129.93. The cross remains above the 130.00 psychological level.
EMU retail sales contracted -2.4% in March (YoY), down from -1.7% (revised lower from -1.4%) and below -1.9% expectations. On the month, data dropped by -0.1% as expected.
April Services PMI figures are the following: Germany eased only from 50.9 to 49.6 (consensus of 49.2); France rose from 44.1 to 44.3 despite unchanged expectations; Italy beat consensus of 45.8 by jumping from 45.5 to 47.0; Spain dropped from 45.3 to 44.4 (consensus of 45.7). EMU Markit services PMI rose from 46.4 to 47.0, beating consensus of 46.6, and PMI Composite was expected to stay unchanged at 46.5 but improved to 46.9.
Spanish unemployment fell by -46.1K instead of rising 17.1K in April. Data follows a -5.0K drop in March.
“The EUR/JPY has moved out of its declining channel and also broken over resistance at 129.91. This strengthens the probability of a retest of the annual high at 131.12, over which will favor a further extension higher”, wrote MIG Bank analysts Bijoy Kar and Luc Luyet, targeting strong resistance at 139.22 (05/06/2009 high) on the longer term as long as the support at 123.87 (05/04/2013 low) holds.
EMU retail sales contracted -2.4% in March (YoY), down from -1.7% (revised lower from -1.4%) and below -1.9% expectations. On the month, data dropped by -0.1% as expected.
April Services PMI figures are the following: Germany eased only from 50.9 to 49.6 (consensus of 49.2); France rose from 44.1 to 44.3 despite unchanged expectations; Italy beat consensus of 45.8 by jumping from 45.5 to 47.0; Spain dropped from 45.3 to 44.4 (consensus of 45.7). EMU Markit services PMI rose from 46.4 to 47.0, beating consensus of 46.6, and PMI Composite was expected to stay unchanged at 46.5 but improved to 46.9.
Spanish unemployment fell by -46.1K instead of rising 17.1K in April. Data follows a -5.0K drop in March.
“The EUR/JPY has moved out of its declining channel and also broken over resistance at 129.91. This strengthens the probability of a retest of the annual high at 131.12, over which will favor a further extension higher”, wrote MIG Bank analysts Bijoy Kar and Luc Luyet, targeting strong resistance at 139.22 (05/06/2009 high) on the longer term as long as the support at 123.87 (05/04/2013 low) holds.