The trading volume in the market of EURJPY is rather moderate. The efforts of the currency pair to strengthen makes sales rather attractive, which is confirmed by large clusters of pending orders around 94.75, 94.95 and 95.35. The currency pair may well start a rally. However, the continued eurozone crisis keeps affecting the Euro currency. Therefore, any bullish efforts should be considered as opportunities to short the pair on more favorable conditions.
According to Citigroup, the Bank of Japan’s silence and the escalation of the crisis phenomena in Europe will preserve the pressure on EURJPY. The bank’s analysts assume that the downtrend may reach 92.00. They also expect USDJPY to continue declining slowly down to May’s lows around 77.66 amid the expectations of QE3.
According to , the Japanese Yen keeps strengthening against the UD Dollar. USDJPY is forming wave 3 or С inside a bigger-scale downswing, represented by wave А(С) or shortened С of wave level Daily2.
The closest major level of support is located at 77.65. The downtrend of USDJPY will be completed as soon as the price overcomes the top of the MF sloping channel and consolidates above the MF pivot 79.38.
Текст: Эдуард Кульченко, эксперт факультета торговой системы Masterforex-V
