Guest Commentary: MarketVisionTV - Intervention Style EURJPY Rally Promises Real Volatility
Euro Yen is threatening real volatility as having recovered well from 99.25 the 50-61.8% retracement, the recent break of 102.20 maintains the window for an early intervention style C leg that ironically will prove to be bearish (as they have previously). So although 101.60 should hold for initial test of 103.20 the 1.382 Fibonacci multiple of the 102.20-99.25 decline..while 101 continues to hold then Euro Yen has scope to spike up to the 104.20-45 region (C=A). Since this would be consistent with the Spiral analogy it would prove to be very bearish and not just open a break down through 101.00 to 99.25 but threaten the 97 low. Any loss of 101 in the interim without trading beyond 103.20 would suggest it is still consolidation and limit the decline to the 61.8% at 98.90 before a recovery.
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By EdMatts, MarketVisionTV.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.