Sell EUR/JPY at 103.40, Action Forex Advises
The trading platform Action Forex has today released a new strategy about the EUR/JPY currency pair http://www.actionforex.com/general-information/about-us/about-us-2004100418. The trader explains that despite the brief rise to 103.85 observed on September 17, the subsequent sharp retreat suggested that a temporary top was possibly formed and consolidation with mild downside bias was seen for test of 102.59 support.
Today, Bloomberg reported http://www.bloomberg.com/news/2012-09-18/euro-weakens-versus-peers-before-german-confidence-data.html that the euro fell against most majors, with a survey showing that German investor confidence remained negative as the EU economy continues struggling amid the Eurozone debt crisis. The euro weakened from four month highs versus both the yen and the US dollar, with the decline being fuelled also by concerns that Spain might delay seeking a bailout to resolve its financial problems.
As noted in a new Reuters article http://www.reuters.com/article/2012/09/18/us-markets-forex-idUSBRE88903020120918, the euro fell by 0.5 percent against the yen to trade at 102.69 yen, having rallied to a four-month high of 103.858 yen on Monday. In addition, as reported by Bloomberg, the yen advanced against most of its major counterparts, although gains were limited since the Bank of Japan started a policy meeting which is expected to result in further monetary easing.
Yet, with the outcome of the Bank of Japan meeting still ahead, Forex traders investing in JPY pairs can expect some interesting times ahead.
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