The Euro might correct its recent sharp rise to the Japanese Yen
Tuesday is on its way and we have a new forecast to play the Euro - Japanese Yen. Selling rallies below 139.60 for now seems safe, should we break back above stay cautious cause another leg higher is likely.
The binary options forex pair for the EUR/JPY is getting more volatile in the past couple of hours, we are likely to see a big move any time now so stay put and take a look at our chart
In today’s daily forecast we are going to have a look at the EUR/JPY pair. It has hit its key resistance at 140 in early European trading and has subsided since. While we do see this as a nice level to buy monthly and weekly calls we could wait for a sudden reversal in the trend should the risk off mood on the global stock markets continues.
While the Japanese economy is growing steady the Bank Of Japan is likely to increase its stimulus to achieve its 2% inflation target that it so strongly committed to in the beginning of April this year. We would try to buy puts if the pair breaks through 139.10 on an hourly basis for a short term correction.
The Eurozone issues seem to be steadying, but nobody really knows for how long, as France is becoming on the of the core problematic countries with big trade deficits and high unemployment rate. The levels around 138.90-139.00 will likely provide enough support so we would be buying calls should the price dips that far.
On the other hand if we break back above 139.60 we will focus on buying calls again, and on an hourly and daily basis mostly. The ECB on Thursday is the main risk to the downside, but very few market participants expect any surprises from Mr Draghi and company this month.