The JPY pairs remained to be the star on Tuesday. The BOJ extended its asset purchase targets but only by a meager 1 trillion Yen which translates to around 12.5 billion dollars. This does not seem to be too much for the 3rd largest economy in the world. Yet the Yen, has continued its advance and could very well continue higher due to thin markets. The USDJPY is approaching support at 81.85 and EURJPY is testing the .618 fib at 104.88.
European finance ministers are still meeting in Greece regarding the release of the next trench of aid. Debate has ranged from the length of financing for Greece to the debt to GDP ratio excitable in the future. A resolution could provide a pop for traders to sell into. Heading into Asian and European trading the Bank of England minutes will be of key interest. As always everyone have a great evening and keep your trades KEANE.
EURUSD GREECE GREECE GREECE
The EURUSD has drifted in a narrow range between 1.2825 and 1.2780 for the majority of the week. If the Financial Ministers reach a solution regarding Greece the cross could pop higher. But resistance begins once again just above at Trend Line resistance at 1.2840. Any push lower runs into resistance around 1.27.
Sup 1.2780 1.2700
Res 1.2825 1.2840 1.2885
Keane Plan....Watching for a break of the current range between 1.2825 and 1.2780
GBPJPY THREE TIMES IS A CHARM
The Yen has continued to push higher over the last few days. The GBPJPY has managed to break above key resistance at 129.60. The cross is currently testing the psychological level at 130. A break of this level could lead to a push towards 131.70. A fall back below could lead to a retrace towards daily price support at 1.2850. The Yen is due for a pullback but it is difficult to predict price action heading into the Thanksgiving holiday.
Keane Plan...A break of the 130 level opens the pair up to a move towards 131.70.
EURJPY BREATHING CLEAN AIR AT THE TOP OF THE MOUNTAIN
The EURJPY has managed to climb to the peak of the summit by jumping over 400 pips in 5 days. The cross is now challenging the .618 fib level at 104.80. A hold at this level could lead to a push back lower towards the 50 fib at 102.75. A break above the .618 fib open the way for a test of the 107.50 level.
Sup 102.75 (50 Fib)
Res 104.80 (.618 Fib) 107.50
Keane Plan....Watching for a break or hold of the 102.75 (50 Fib)