The EUR/JPY has decreased today and has deleted the last day’s gains, could decrease further if the Nikkei stock index will touch new lows. The Yen has increased sharply versus the European currency as the JP225 stock index has plunged today, has opened with a gap down and is approaching a major dynamic support, remains to see what will happen in the upcoming days because a further drop will send the Yen much higher versus all its rivals, not only against the Euro.
The pair has decreased, but maybe will be better to stay away from this pair because we don’t have any trading opportunity. Is moving somehow sideways, so only a breakout from the minor range will bring a clear direction.
The Yen has increased even if the Japanese Retail Sales surged only by 0.1% in February, less versus the 0.7% estimate and less versus the 1.0% growth in January. On the other hand, the Euro has dropped significantly even if the German Import Prices surged by 0.7% in February, beating the 0.4% estimate, the indicator has increased less versus the 0.9% growth in the previous reading period.
A sharp drop occurred today, signalling that the bears are in control, price has fallen much below the 119.31 previous low and looks determined to reach the 118.38 static support, where we could find strong support again. You can see that is still trapped between the 118.38 and the 123.30 levels, could resume this range if the 118.38 will hold.
We’ll have a clear direction once the rate will escape from the minor sideways movement, so maybe will be better to stay away till we’ll have a valid breakout.
Could decrease further if the JP225 will resume today’s bearish candle, technically is also expected to decrease further after the false breakout above the 50% retracement level and after the breakdown below the median line (ml) of the ascending pitchfork, but only a breakdown below the 118.38 will confirm a further drop.
The medium term upside movement will resume only if will take out the 123.30 static resistance, but remains to see what will happen because is somehow under pressure after the failure to stay above the median line (ml).