Although Dollar/Yen has made a deeper than expected drop yesterday, the drop was of a corrective nature.Provided the current drop holds above 114.50 Dollar/Yen has the opportunity to extend its rise to 116.00.Expect some ranging 114.90/115.40 today before Dollar/Yen extends the drop to 114.50/70.But then Dollar/Yen should resume its rally towards 116.00 to complete the corrective sequence from 114.10.A strong drop through 114.50 however will suggest that the upward corrective phase is already complete and that the next decline to 113.35 initially and 111.00 later is already unfolding.
The rise off yesterday’s 146.60 low suggests that the rally remains intact.After some ranging 146.85/147.40 today Euro/Yen should push to a new high.But do not expect too much.Euro/Yen is trading in narrow daily ranges and in small swings, so it is unlikely that levels above 147.40 will be held for long.But until Euro/Yen drops decisively through 146.30 it can continue this upward drift until 149.00 it tested.
Aussie/Yen held above 85.50 yesterday and by doing so has improved the odds for an immediate rise.The immediate target is 86.50.A break of that level will then clear the way for a challenge of the last high at 87.80 and later of 89.00.Only a drop through 84.70 will confirm that the rally attempt has failed.
Disclaimer: All information on this web site is subject to change. The use of this web site constitutes acceptance
of our user agreement. All publisher financial articles at
FXtree.com are those of the individual authors and do not represent trading recommendations
of FXtree.com or its staff.
