Japanese Yen In Trouble As EUR Looking To Recover

The yen and dollar fell on speculation European officials meeting this week will agree to assist Greece in tackling its deficit, reducing demand for the two currencies as a refuge. The euro rallied from near a one-year low versus the yen after a European Central Bank spokeswoman said President Jean- Claude Trichet will leave a meeting in Sydney early to attend a European Union leaders’ summit.

Trading Tactics

Buy EUR/JPY on signs of a failure swing bottom.

The buying point is at 123.00; Fibonacci 50% is the take profit at 123.80; Fibonacci 23.6% is the stop loss at 122.20

The selling point is at 122.10; Pivot point is the take profit at 120.85; Fibonacci 38.2% is the stop loss at 123.10

Technical: Euro breaks previous resistance and forms a clear uptrend. A move back higher could set up a test of 123.80

To strengthen our analysis; we use many other indicators, starting with MACD (Moving Averages convergence divergence); we notice MACD crosses the signal line upwards; RSI (Relative Strength Index) is in an uptrend; Momentum and stochastic are in a bullish direction.

The following analysis is for information only; Finotec is not responsible for any decisions or misinterpretations based on the given text.

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