The EURYEN weekly charts confirms the anticipated direction towards 105/10 target zone and the fact that stockmarkets need to test the lows. The Yen already does and it will take 3 weekly lower closes to complete this wave and trigger a powerful counter rally. In case of the yen it may mean even an overall turn as it is fundamentally overvalued. We also entered the final quarter of the Japanese fiscal year and repatriation of money will drive Yen value higher. At some point we will see the Central bank intervene though as the overvalued Yen is a big drag on the Japanese economy. Rising Yen and easing Euro will be themes for the next weeks in a trend perspective - in term of the YEN a powerful drop in Q2 is to be expected.
Tuesday, January 13, 2009
EURYEN technical update
The EURYEN weekly charts confirms the anticipated direction towards 105/10 target zone and the fact that stockmarkets need to test the lows. The Yen already does and it will take 3 weekly lower closes to complete this wave and trigger a powerful counter rally. In case of the yen it may mean even an overall turn as it is fundamentally overvalued. We also entered the final quarter of the Japanese fiscal year and repatriation of money will drive Yen value higher. At some point we will see the Central bank intervene though as the overvalued Yen is a big drag on the Japanese economy. Rising Yen and easing Euro will be themes for the next weeks in a trend perspective - in term of the YEN a powerful drop in Q2 is to be expected.
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