EUR/USD Technical Analysis
The euro has initially gapped lower to kick off the trading week on Monday, only to turn around and show signs of life. With that being said, the market looks as if it is still trying to break out to the upside, despite the fact that you would expect a lot of risk off behavior. So, with this, you follow what the market does, not what it should do in theory. So, if we can break to a fresh new high, one would have to assume that the euro continues to strengthen.
USD/JPY Technical Analysis
The US dollar fell against the Japanese yen after initially trying to rally. It looks like that 145 yen level continues to be some type of massive brick wall, if you will, of resistance. This makes me very interested in this level because if we break above there on a daily close, I think it’s going to mean quite a bit. The market participants right now, though, seem to be content with simply grinding sideways between 145 yen on the top and 142 yen on the bottom. With that, we probably continue to have buy on the dip, but it is going to be messy.
