With the tragic earthquake and tsunami playing havoc on the Yen last week it was very difficult to trade. Similarly to most Yen pair’s strength seen early in the week was soon balanced out after the Japanese intervention.
The EUR/JPY produced a strong Hikkake pattern on the weekly time frames. In the chart below you can see the outside bar from 3 weeks ago followed by the inside bar from 2 weeks ago finally followed by last weeks pin bar suggesting more bullish momentum to come.
Its important to remember last week was almost 100% influenced by news on the Yen and little technical’s or price action came into play. Although the set up below looks very strong it would be wise to ‘sit and wait’ on the Yen until we start seeing more stability which could take a while.
