Bearish signal for EurJpy


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.

Eur/Jpy

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.

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD trades weak below 1.0800 amid Good Friday lull, ahead of US PCE

EUR/USD trades weak below 1.0800 amid Good Friday lull, ahead of US PCE

EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair keenly awaits the US PCE inflation data and Fed Chair Powell's speech for fresh hints on next week's price action. 

EUR/USD News

GBP/USD holds steady above 1.2600 as markets stay calm on Good Friday

GBP/USD holds steady above 1.2600 as markets stay calm on Good Friday

GBP/USD trades sideways above 1.2600 amid a typical Good Friday trading lull. A broadly firmer US Dollar could keep any upside attempts limited in the pair ahead of the US PCE inflation data and Fed Chair Powell's appearance. 

GBP/USD News

Gold price sits at all-time highs above $2,230, US PCE eyed

Gold price sits at all-time highs above $2,230, US PCE eyed

Gold price hit all-time highs at $2,236 on Thursday to finish Q1 2024 with a bang. Most major world markets, including the US are closed due to Holy Friday, leaving volatility around Gold price highly subdued. US PCE inflation and Powell are awaited. 

Gold News

Jito price could hit $6 as JTO coils up inside this bullish pattern

Jito price could hit $6 as JTO coils up inside this bullish pattern

Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.

Read more

Key events in developed markets next week

Key events in developed markets next week

Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.

Read more

Majors

Cryptocurrencies

Signatures