FXstreet.com reports from Cordoba on Nasdaq New Service on 10/28/2010 at 10:26 PM in article EUR/JPY Breaks Below 112.00 Amid Risk Aversion that the Yen crosses are sinking quickly this Friday in Asia as risk aversion spreads across the board after mixed data coming from several indicators from Japan, Australia and the UK.
EUR/JPY in particular, has dropped around 90 pips within the last 3 hours and continues to head south. So far EUR/JPY has set a fresh 7-day low at 111.95. At time of writing the pair is trading at the 112.00 area, 0.74% below its opening price.
From a technical perspective, the 4CAST analyst team commented, "Break here will expose 111.58 low to retest and see scope for further extension lower. Only swing over the 113.19/30 highs and trendline resistance needed to turn focus higher
If the lower EUR/JPY holds through New York Opening On 10-29-2010, the Euro, FXE, World Stocks, ACWI, and VT, as well as European Shares, VGK, and emerging market shares, EEM, will trade lower in the morning of 10-29-2010; and the US Dollar, $USD, UUP, will likely trade higher, and the major worlds currencies, DBV, and the emerging market currencies, CEW, likely lower. A falling EURJPY means disinvestment from stocks globally.
Disclosure: I am invested in gold bullion