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30 Sep 2013
EUR/JPY plummets on Italian politics woes
FXstreet.com (Athens) – The EUR/JPY is falling sharply since the opening of the Asian markets (opened with a huge gap of approximately 100 pips), due to the strong “risk-off” sentiment.
EUR/JPY collapses as the Japanese currency outperforming across the board
The EUR/JPY is plunging on Monday as the looming government shutdown in the US and the debacle that has become Italian politics, have turned off any appetite for higher yield currencies. Elaborating on, the Italian center-right leader Berlusconi pulled his ministers out of the cabinet on Saturday, effectively bringing down the government of Prime Minister Letta and leaving the euro-zone's third-largest economy in an absolute chaos. Taken for granted, that we witness no government also in Germany (as the talks will take approximately 1-2 months) and that we are amidst a potential US debt default, investors should not be taken aback if the pair continues to set up a downtrend mode.
Technical Outlook on EUR/JPY
The pair finds itself in major weakness since the opening of the Asian trading session. Being more précised, the loss of the Monday’s Asian session low at 131.38 will ultimately signal a further downside risk to the September low as of 129.88.
EUR/JPY collapses as the Japanese currency outperforming across the board
The EUR/JPY is plunging on Monday as the looming government shutdown in the US and the debacle that has become Italian politics, have turned off any appetite for higher yield currencies. Elaborating on, the Italian center-right leader Berlusconi pulled his ministers out of the cabinet on Saturday, effectively bringing down the government of Prime Minister Letta and leaving the euro-zone's third-largest economy in an absolute chaos. Taken for granted, that we witness no government also in Germany (as the talks will take approximately 1-2 months) and that we are amidst a potential US debt default, investors should not be taken aback if the pair continues to set up a downtrend mode.
Technical Outlook on EUR/JPY
The pair finds itself in major weakness since the opening of the Asian trading session. Being more précised, the loss of the Monday’s Asian session low at 131.38 will ultimately signal a further downside risk to the September low as of 129.88.