TechnoMeter

Nothing really happened; no new policies were unleashed and no new announcements were made, but that was somewhat of the issue. Markets were looking for some kind of extension or increase to Japanese QE and after the incredibly salient report had made the rounds a week earlier, it looked like something new would be announced.



But when no additional information was unveiled by the Bank of Japan at that April rate meeting, that bullish structure in EUR/JPY was smashed by a surging Yen.

Price action made some very interesting moves around this theme, and these levels can certainly become usable again. The low on Friday and again on Monday of this week was but a few pips below the previous swing low at 121.70. Sellers tried to take the pair lower yesterday but, again, support came into play to offset the selling pressure, and now EUR/JPY is catching resistance off of another familiar level at 123.08, which is the 38.2% Fibonacci retracement of the ‘secondary’ move in EUR/JPY, which takes the 2008 high to the 2012 low).

more...