Tuesday, January 26, 2016

CCY Corner: EURJPY CROSS RATE Comparative Analysis

With that out of the way, the EURJPY cross correlated to the Japanese Yen's price movement have likewise shown some relative support zone @125.85 low and a price recovery currently @128.47 marks a correlated Yen weakness compared with the USD maintaining strength well supported not only by its price, but by some encouraging figures from housing prices data and US Consumer Confidence #'s. The USD direction would have some momentum and increase volatility by the next GDP data for the week.

The price action pullback of the EURJPY from its 125.80 low can no be a confirmation of its benchmark support. Quite a significant move and a divergent comparison with the EURO is well justified. Marking the low price of the EURUSD @1.0580 as the first bottom price based on the current chart. However, the current configuration of the EURUSD well within a descending channel from it high @1.1048 price zone was a result of the ECB disappointing the market of its inaction on rates.

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