The yen traded near a three-week low against the dollar after U.S. employment and factory reports signaled the world's biggest economy may avoid recession.
The yen traded near a three-week low against the dollar after U.S. employment and factory reports signaled the world's biggest economy may avoid recession.
The European Central Bank will keep its rate at 4 percent today, according to all 62 economists. The bank announces its decision at 1:45 p.m. in Frankfurt today. President Jean-Claude Trichet holds a briefing at 2:30 p.m.
The following technical analysis gives us a detailed lookout on what is expected to happen to EUR/JPY.
The buying point is at 162.70; Based on a break of a strong resistance.
- Previous resistance is the take profit at 163.72
- Fibonacci 23.6% is the stop loss at 162.04
The selling point is at 161.53; based on a clear downtrend.
- Previous support is the take profit at 160.55
- Fibonacci 23.6% is the stop loss at 162.55
To strengthen our analysis; we use many indicators, starting with MACD (Moving Averages convergence divergence); we notice the crossing of the two moving averages above the zero line, the shorter term moving average is faster than the long term and is pointing downwards with break of zero line. In order to find the power of the market, we use RSI (Relative Strength Index).With RSI; we can determine that the market is in a downtrend.
The momentum oscillator is very important to understand the strength of the market and as we see on the graph is in a bearish direction. The Stochastic oscillator breaks 80% line and continues to go lower.
