The Euro continues to look very soft against the Japanese yen, and on the weekly chart you can see that we give up gains every time we try to rally. There had been a gap in this general vicinity previously and it now looks as if we are hell-bent on breaking through it. If we do, this market could break down rather significantly as we would be well below the 61.8% Fibonacci retracement level and extending the selling pressure. At this point, it’s very likely that the 100% Fibonacci retracement level will be attempted.
Fading rallies continues to work on short-term charts, and it’s obvious that the EUR/JPY pair is very negative. At this point in time, it should also be noted that this is a risk barometer for most markets in general, and it’s very likely that we will continue to see negativity as there are so many concerns about the US/China trade situation and of course the global growth slowing down overall. Japan will continue to attract a lot of monetary flow and the bond market, and of course money is starting to run away from the European Union as the German economy is very likely to slip into recession. With that being the case, it’s very likely that the Euro will suffer against most currencies, especially this one.
Selling short-term rallies probably continue to offer selling opportunities, and at this point I think that we are more than likely going to go looking towards the ¥110 level, which is closer to the 100% Fibonacci retracement level. If we recapture the ¥120 level, then one would have to rethink the entire situation but it doesn’t look very likely to happen in this environment, because quite frankly everything seems to be so precarious it’s difficult to imagine taking a lot of risk on.
Fading rallies continues to work on short-term charts, and it’s obvious that the EUR/JPY pair is very negative. At this point in time, it should also be noted that this is a risk barometer for most markets in general, and it’s very likely that we will continue to see negativity as there are so many concerns about the US/China trade situation and of course the global growth slowing down overall. Japan will continue to attract a lot of monetary flow and the bond market, and of course money is starting to run away from the European Union as the German economy is very likely to slip into recession. With that being the case, it’s very likely that the Euro will suffer against most currencies, especially this one.
Selling short-term rallies probably continue to offer selling opportunities, and at this point I think that we are more than likely going to go looking towards the ¥110 level, which is closer to the 100% Fibonacci retracement level. If we recapture the ¥120 level, then one would have to rethink the entire situation but it doesn’t look very likely to happen in this environment, because quite frankly everything seems to be so precarious it’s difficult to imagine taking a lot of risk on.