💶💴EUR/JPY The rally is not over yet💶💴EUR/JPY The rally is not over yet.
💶Euro is showing signs of strength in the current week.
💶 Looking at the Unemployment rate in the Eurozone, it stands at 6.6%, the lowest on record.
💶Inflation is already close to 10% and on the 31st when the flash year-on-year reading is forecast to be 10.1%
💶Interest rates have been raised by 75 basis points and the market is betting on another 75 point hike to 2%. The decision will be made on Thursday 27 October.
💶The consumer sentiment indicator which is off its lowest levels in years has started to rise slowly and the market expects the positive trend to continue in the coming months. There will be another reading on 28 October.
💶💴On the other side of the globe.
💴In Japan, no change.
💴Unemployment Rate low at 2.5%
💴Inflation low 3%. Japan is one of those countries that has not been hit by Inflation as much as Europe and the USA.
💴Interest rates at -0.1%. Still negative from 2016. Hence these falls in the Yen. When other countries raise rates causing their currencies to strengthen, their strength against the Yen increases.
💴For now, there are no increases on the horizon. The Bank of Japan says it has no intention of changing its monetary policy.
💴But the government doesn't want the Japanese Yen so cheap either, hence in recent days we have seen sharp falls which were interventions to stop the Yen weakening sharply against other currencies.
💴I don't think this will stop investors from pushing prices up again.
Turning to the chart.
📈It probably doesn't need to be told to everyone that we have been in an uptrend since 2000.
📈In the last few days, after the interventions and the attempt to dump the price which was momentarily pushed upwards. This took place at support levels zoned between 143 and 145.
📈 We do not see any signs that the price is going to make any correction in the coming days seeing such big pullbacks on the 1D candles.
📈In order to determine the target we move to the 1M chart.
📈Where after measuring the 2 biggest downward waves using fibo. We come out with a cluster at levels of 160 which seems a very likely scenario if the policy of the central bank of Japan remains unchanged and we enter a time of growths on the Euro.
📈Entering at the current moment and setting a stop below the recent price pullbacks after the interventions with a take profit at the 160 level brings out our best profit/risk ratio so far since I've been posting at.
🚀If you appreciate my work and effort put into this post I encourage you to leave a like and give a follow on my profile.🚀
