It looks like European currencies have finished
their bullish marches and are ready to correct versus the greenback and also
Japanese Yen. All technical sings are showing a reversal in Japanese Yen
against all major currencies. I am not an expert in fundamental analysis, but
that is also indicating that the downtrend in Yen that started at the end of
November last year is about to end. I talked about the current conditions that
are similar to those of 2012 (when Yen reversed) in my last post.
I mostly concentrate my short orders around eur/jpy
and gbp/jpy pairs. The reasons have been stated above. A few orders are already
opened and I will start adding more when the eur/jpy breaks below 124.94 and
gbp/jpy below 147.08. These are important support areas and if they break the
move downward should accelerate. In fact, a conservative technical trader would
have to wait for those levels to be broken before entering his first selling
trades. I might be a little bit too early with my trade decisions, but as my
stop loss orders are in place I am not afraid of anything. Hope the trend in
Japanese Yen will really start this month.
