EUR/JPY Classical 05.11
EUR/JPY: While we projected a drop back to retest the 2009/multi-year lows by 112.00 following the break of the latest consolidation lows, we did not anticipate that the move would be so fast and so intense. Last Thursday’s sharp drop easily managed to clear 112.00 and open an acceleration of decline down to 110.60, ahead of the latest jackknife reversal. It is extremely difficult to speculate where we go from here and we recommend standing a side for a bit to see how things play out. In the interim, look for any rallies to be well capped ahead of previous support now turned resistance in the 122.00 area ahead of a potential resumption of declines.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.