EUR crosses/JPY crosses/Technical Analysis/USD/JPY

EUR/JPY: Pulls back off weekly trend-line

The weekly trend line which I mentioned earlier (“first main level to watch today is in EUR/JPY around 106.20, which is the weekly trend-line, 138 through 123”) seems to have withstood the first challenge and the cross has pulled back from there.

Just like we are seeing EUR shorts bailing out before the long weekend, don’t be surprised if JPY shorts also start booking some profits?

  1. I hope so Sean, it will make it easier to forget about the profits I would be wallowing in had I not covered my own shorts too early!

    But to me this whole JPY crosses rally seems like some big players unwinding JPY long positions ahead of Thanksgiving and year-end, rather than a real willingness to dump JPY just because an opposition politician who was previously ineffective himself as Prime Minister says a load of stuff about monetary policy. Given the way his comments have been criticised in the aftermath but the rally has continued anyway, I think that his comments were just used as a signal to start the year-end unwind.

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