The yen has severely weakened during the Asian session as the Nikkei tries to play catch up with the large, volumeless pullback continuation in SPX.
Intraday technicals are indicating that the pair is at a tipping point. A break of the minor downward trend line would signal further continuation, potentially to 125.10 (pending clearance from the 72-4H EMA).
Although, the pair may remain volatile. If the euro continues to ease south on expectations that the European Central Bank will further ease, and risk sentiment wanes, the pair could trend lower.
However, if traders continues to push risk assets higher, subsequently crushing the yen, even further euro weakness may not stop more upward pressure.
A divergence in price action and the relative strength index could be signaling price turnover.
Please feel free to comment and share charts! And follow me @Lemieux_26
Check my posts out at:
bullion.directory/ab...christopher-lemieux/
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www.teachingcurrencytrading.com
oilpro.com/chrislemieux
Intraday technicals are indicating that the pair is at a tipping point. A break of the minor downward trend line would signal further continuation, potentially to 125.10 (pending clearance from the 72-4H EMA).
Although, the pair may remain volatile. If the euro continues to ease south on expectations that the European Central Bank will further ease, and risk sentiment wanes, the pair could trend lower.
However, if traders continues to push risk assets higher, subsequently crushing the yen, even further euro weakness may not stop more upward pressure.
A divergence in price action and the relative strength index could be signaling price turnover.
Please feel free to comment and share charts! And follow me @Lemieux_26
Check my posts out at:
bullion.directory/ab...christopher-lemieux/
www.investing.com/members/200193197
www.teachingcurrencytrading.com
oilpro.com/chrislemieux
Comment:
Already down nearly 100 pips. Next potential downside target 122.78
