The EUR/JPY goes down aggressively on the short term, resuming the last day’s bearish movement, could touch new lows in the coming hours because is very heavy. Is trading in the red as the Japanese Yen is strongly bullish on the short term, the Yen has registered significant gains also versus the greenback and against the Pound.
The Yen continues to increase as the Nikkei stock index has decreased today and is approaching the 18936 static support. The Japanese index could approach also the 18898 yesterday’s low, but he need to take out a major confluence area to do this, the index continues to move sideways on the short term, but is very close to make a crucial breakdown, which will attract more sellers.
The Yen will continue to increase as long as the Nikkei will decrease, so the EUR/JPY should drop further in the coming days.
The Euro goes down also because the Gfk German Consumer Climate has decreased from 10.0 to 9.8 points, even if the economists have expected to see an increase to 10.1 points, we’ll see how will react after the Belgian NBB Business Climate will be released, the economic indicator is expected to stay in the negative territory for the second consecutive month in March.
The rate has decreased and has resumed the bearish movement, is trading much below the 120.00 psychological level signalling that the sell-off may continue. Has failed to stabilize above the 50% retracement level and now has ignored the dynamic support from the median line (ML) of the ascending pitchfork and now is approaching the upper median line (UML) of the major descending pitchfork, where he could find temporary support again.
Remains to see what will happen because we could see a larger decrease after the failure to reach the 123.30 major static resistance, signalling that a major drop could come on the short term, however, we could have a bounce back because the rate could come back to test and retest the broken median line (ML) of the ascending pitchfork before will drop much deeper, could be attracted by the lower median line (LML) of the ascending pitchfork in the coming weeks.