BOJ will cause the Yen to strengthen versus the Euro

While the Euro and US Dollar fight out a sloppy battle there is more definitive weakening by the Euro versus the Yen developing. The range of 138.75 to 139.75 has been a price range of consolidation before a significant move. Back in early December 2013 this area served as a consolidation period before a huge up move on 12/6 and the subsequent rally from 139 to 145. Having sold off that rally and a bounce from 137 we wait for this consolidation to end and see the next move. With the Aroon filing to rally properly for the bulls and the RSI stuck at 50 I believe the next move will be to the downside. I won't put a position on until the market shows me its cards but I believe we'll be seeing those cards soon. In less than five hours comes the BOJ Interest Rate Decision and Monetary Policy Statement. I anticipate a stronger Yen versus the Euro.