- During the trading session on Monday, we've seen the euro gap higher to kick off the trading session, pull back a bit, and then rally again before giving up a little bit of momentum right around the 158 yen level.
- The 158 yen level is a minor area of support resistance.
- The most important, I believe at least at this juncture is the 155 yen area of the chart has been a hard floor for some time and I think it probably continues to be so going forward.
Now the question of course is going to be whether or not we can continue this momentum And I think we probably can maybe not so much Because of the euro, but I think because of the yen.
Top Forex Brokers
Yen Overdone
The yen is overdone, has been for a while against most currencies, and therefore it's a little bit of a knock on effect. Let's be honest here, the yen moves in the same general direction against almost every currency at the same time. So therefore, I think it's probably only a matter of time before the euro goes looking to the 160 yen level. The 160 yen level also has the 50 day EMA hanging around as well.
So I do think we've got a situation where we might be in a bit of a range, but if we can break above the 160 yen level, that would obviously be very bullish. That would allow the Euro to really take off after forming a massive W pattern. I think given enough time though, we've got a situation where you're probably going to see more of a “buy on the dips” type of market and it's probably going to be very choppy and noisy. I don't necessarily think we get a clean move here despite the fact that Monday was so strong.
Begin trading our daily forecasts and analysis. Here is a list of Forex brokers in Japan to work with.