By Forex Signs, Inc.
After falling from 109.41 to 107.61 levels, which is approximately 180 pips down, the EURJPY as of the moment is expected to move in consolidation between the resistance level at 108.26 and support level at 107.61. The MACD (12, 26, 9) of the M30 price chart is still showing signs of a consolidation, as the signal line closes its gap with the MACD line. But the anticipation for a probable selling proposal is still visible with the simple MA (65) along with the price at the 1-hour chart is heading towards the bearish channel. Apart from that, the Parabolic SAR line at the same time frame rises above the price, thus stimulating a prospective bearish momentum in the succeeding events. For the moment, a hold position is seen to be applicable for the current movement of the EURJPY. And bearish opportunity with the pair heading towards the downtrend for the upcoming trading session is still foreseeable.
Business Sector in Japan Looking Optimistic, Favors Yen
The Japanese yen may experience another bullish trend today against a basket of major currencies, particularly the U.S. dollar, as the business sector of Japan is doing well towards year-end. The U.S. government will use Japan’s standardized quick charging system, the CHAdeMO Method, in large-scale driving tests of electric vehicles (EVs), it has been learned. This will be the first time a large number of quick chargers using the CHAdeMO Method are used overseas and is seen as an initial step toward the Japan system becoming the world standard. This tie-up between Japan and US is very good for the yen as demand for the latter will strengthen.
Further, the Yamanashi prefectural government plans to seek special fuel-cell district status for the prefecture, in which restrictions on hydrogen fuel for fuel-cell vehicles would be eased, under the central government’s special economic zones to be launched next fiscal year. The prefecture also intends to use central government subsidies to fund small and midsize companies involved in fuel-cell development projects.
However, there is a small chance that the yen may move otherwise if something optimistic happens in favor of the U.S. economy. Anyhow, for the meantime, it is advisable to sell the USDJPY pair.
About the Author
Forex Signs, Inc., Founded in 2006 in Wall Street, New York City, FSI relentlessly strives to be the premier Forex brokerage company in the industry by providing exclusive and unmatched trading and investment related services while constantly developing innovative solutions that cater to the vast requirements of both individual and institutional market participants.
