Forex: EUR/JPY, from run on stops sub 105.40 to threaten 106.15/20

FXstreet.com (Barcelona) - Following a successful run on stops beyond 105.40, the Euro managed to change its fortune against the Japanese Yen, printing a major bullish reversal signal off 105.28 low to currently eyeing a breakout of 106.15/20 resistance.

Going into Asian trade,FXWW Founder Sean Lee, notes "EUR/JPY should once again be the main intraday game and the first topside level to watch will be around 106.20, which was yesterday’s breakdown level...".

Sean pacifies the retail Yen sellers community by adding that at the moment there is no indications of any Yen panic buying, "but the closer we get to the Japanese December 16th election date, the more likely a big Yen-buyback becomes."

Technically, as things stand, Sean sees "mild bullish bias intraday in line with the medium-term trend", although for those expecting major volatility, just like yesterday's 50+ pips decline post Tokyo open, the analyst thinks they may be disappointed unless "we get some significant flows in early Tokyo trade" he says.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

RELATED TOPICS