The Euro dipped against the Yen and the Dollar touched a 3 month low. However, during the Asian session we saw the Euro rise, supported by hopes for a Greek debt restructuring deal that would help the country avoid a disorderly default.
There is a lot of talk about another Japanese ‘Yentervention’ especially as the Yen reaches record levels against both the Dollar and Euro.
News Watch For EURJPY
There are no High Impact News Releases Scheduled for the Euro or Yen currency pairs today but traders will be monitoring the German Unemployment Change and Unemployment Rate data due later today.
Price fell as expected to the 100.300 level and found support at the lower bearish trendline channel. Since then, price has bounce off this trendline and gone on to make it’s way all the way up to the upper channel trendline. Take a look at the following image:
At this point we could see the market go in either direction. Patience is the key here!
We need to wait for a clearly defined movement in a specific direction before we decide to enter a position.
If price goes up and breaks out of the upper channel trendline, I’ll be looking to the 101.000 level to offer resistance. Should price break out of this level too I’ll be looking to go long.
On the other hand, we may see price dip further down and if there is a breakout below the 100.000 level I’ll be looking to enter to the short side.
It may take a while before we see any significant movement in either direction, but I’ll keeping an eye out for an entry signal throughout the day.