EURJPY - Under huge pressure due to Germans

The recent trend of the currency yen is strong. EURJPY fell sharply by nearly a hundred points due to the news of the failure of the Germany government formation. However, after the European market opened, the euro reversed the decline completely. But there are still some news saying that the GSD still refused to cabinet with the CDU, so that the risk of re-election rising, the euro may still be under pressure.

For the yen, Japanese Prime Minister Shinzo Abe made another mention of the yen exchange rate in the morning. However, Abe said the previously uptrend of yen had been adjusted. This might mean that yen exchange rate is not what Japanese government worried now and the yen may continue to strengthen.


The EURJPY fell sharply in the morning, but reversed higher now. However, the overall trend remains weak and weak, may provide short opportunities.

For the 4 hours chart, a sharp rebound due to a test of the neckline. The previous consecutive test 134.50 high may come to an end. It is more likely to form triple top (head and shoulders), so that the pair outlook pretty bearish. RSI indicators show a strong rebound from the oversold zone, but still failed to rise above the 50 level that the it may end up with downtrend again.

For intraday, it is proposed to short the rallies of the pair. Above the key resistance seen at 132.65, which is the resistance level of the short-term downtrend line, if broken may turn into the upside, but stronger resistance will appear at 133.20; traders continue to look at 131.20 that was near the intraday lows, we hope the yen will give some momentum and broke the neckline support and eventually the longer-term goal is pointing to 129.40.