EurJpy dangerously breaks the supports of 135/136, widening the divergence with respect to the German ZEW confidence indicators that last week registered a quite strong upward leap, while the EurJpy cross, that is usually well correlated, is still on its positions. As we have explained here: http://www.smarttrading.it/1/id_7365/Franco-svizzero-antipasto-dello-Yen-giapponese.asp, the market seems to ignore the positive signals coming from the German data at the moment, focusing on the European QE or even on a change of attitude of the BOJ in line with what Switzerland has done. This also emerges from the fact that, apart from the dollar, the Yen is in a sharp strengthening on all other currencies.
We will see what will happen next week after the Fed, but meanwhile the attitude of the monthly Macd should make those who want to sell the yen against the Euro think a lot... A new sell signal of EurJpy just been registered at this point, and might come as a surprise for many hedge funds. Over the previous four cases, only that of 1997 proved to be a false one, favouring a bullish cue before the final fall.
We will see what will happen next week after the Fed, but meanwhile the attitude of the monthly Macd should make those who want to sell the yen against the Euro think a lot... A new sell signal of EurJpy just been registered at this point, and might come as a surprise for many hedge funds. Over the previous four cases, only that of 1997 proved to be a false one, favouring a bullish cue before the final fall.
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