This popular pair
has just given us a very strong indication that the bearish trend on the Weekly Chart is likely to continue into the first few weeks of 2012. After a brief period of
consolidation that led to the formation of a Pennant on the Daily Chart, a
breakout signal has now been given to signal lucrative bearish moves in the days
ahead for traders. Within the next few days, the pair is likely to hit an opposing downtrend line at 119.00 before breaking below to head to the weekly forecast target of 116.48. This target is likely to be reached within the next 7 to 10 days and coincides with the average weekly range of 500 pips as well as the major Support point for the Weekly Chart.Since a strengthening of the Japanese Yen has been associated with increased risk-aversion in the financial markets, the resumption of this downtrend is likely to be accompanied by more negative news regarding the world economic outlook. We could therefore see a deteriorating situation in Europe regarding the Debt Crisis and its negative effect on the financial system and global production in the real sector.  Nevertheless, the opposing `risk` factor to further gains for the JPY may come from interv…
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