TechnoMeter

Over the past couple of week’s we’ve been following a rather pensive test of a long-term support zone in EUR/JPY. Throughout most of last year, EUR/JPY remained in a bullish trend that kept some very clean characteristics; key of which was what happened around the October ECB rate decision. This is when the ECB extended their stimulus program, disappointing the hopes that had built for some type of announcement around taper or stimulus exit. This led to rather noticeable support breaks in pairs like EUR/USD; but in EUR/JPY, prices merely moved down to support, at which point buyers showed up, and the lows held until bullish price action was able to take over in December.

more...