EURJPY might be on the descent and it has just reacted to long-term support. However, it also broke 200 EMA (Black Line) and is trading below rejecting it once. Suffice to say, that we are from my point of view, in the decision area right now.
Although high commodity prices, oil, in particular, are as bad for Japan as they are for Europe, Yen is still acting as a safe haven currency. This is likely behind a somewhat sharp move towards the support (orange).
If I am right and the markets are concerned about the energy crisis in the making and extended inflation in the commodities, Yen will be among the "safe haven" currencies investors may choose to pick.
Why trade it again in EUR? I like the support. If obvious levels like these get broken, moves are more likely to continue. I would consider trading it against AUD or CAD, but their charts do not paint as clear a level like this.
My safe haven theory is further supported by growing prices in Gold, but it is contradicted by growth in Euronext 100 (N100) which is not exactly a safe asset if Europe gets in trouble. I would like to see a reversal candle in Euronext too before or along with the breakout in EURJPY.
What do you think? Am I approaching relational analysis right?
Although high commodity prices, oil, in particular, are as bad for Japan as they are for Europe, Yen is still acting as a safe haven currency. This is likely behind a somewhat sharp move towards the support (orange).
If I am right and the markets are concerned about the energy crisis in the making and extended inflation in the commodities, Yen will be among the "safe haven" currencies investors may choose to pick.
Why trade it again in EUR? I like the support. If obvious levels like these get broken, moves are more likely to continue. I would consider trading it against AUD or CAD, but their charts do not paint as clear a level like this.
My safe haven theory is further supported by growing prices in Gold, but it is contradicted by growth in Euronext 100 (N100) which is not exactly a safe asset if Europe gets in trouble. I would like to see a reversal candle in Euronext too before or along with the breakout in EURJPY.
What do you think? Am I approaching relational analysis right?