FX:EURJPY Euro Fx/Japanese Yen
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 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 .