The Euro is deceiving investors bewildered by certain movements. As we predicted here, the Yen is actually moving in weakness in what is one of its most fragile months of the year. The problem is that the weakness is against the US Dollar and not against the Euro, as the single currency on the contrary, is crumbling. EurJpy is favouring the signal that we had already anticipated a few weeks ago on the weekly MACD.
Also confirmed on the graphs based on the Ichimoku cloud, EurJpy will find a valid support in 128.50 (38.2% of retracement of the entire upside started in 2012), but the break of this level would push the cross towards 122.
The underestimation of the Yen against the Dollar in terms of purchasing power parity seems to ward off in the short term the weakness of the Yen that has never been so competitive in the 80s with an underestimation that is now approaching 30% against the greenback.
Also confirmed on the graphs based on the Ichimoku cloud, EurJpy will find a valid support in 128.50 (38.2% of retracement of the entire upside started in 2012), but the break of this level would push the cross towards 122.
The underestimation of the Yen against the Dollar in terms of purchasing power parity seems to ward off in the short term the weakness of the Yen that has never been so competitive in the 80s with an underestimation that is now approaching 30% against the greenback.
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