EUR/JPY was previously in a consistent bullish trend that even held-up through the ECB’s extension of QE last October. But that support has already started to give way as March ushered in lower-lows and lower-highs in the pair.
Gold bulls have posed waning enthusiasm since setting a fresh yearly-high in late-January. This has helped to bring-in a bearish channel, but buyers have continued to hold Daily support around a short-term Fibonacci level.
The combination of current sentiment and recent changes gives us a stronger Bitcoin-bearish contrarian trading bias.
The political legitimacy of PM Shinzo Abe may trigger risk aversion and a stronger JPY while institutions look to potential of 100 JPY per USD on trend continuation.
Traders can look to technical extremes on short-term momentum dynamics to spot opportunities. Currently, the Australian Dollar is flashing red in this respect.
The German and French benchmarks are moving higher in a modest risk-on environment, but each have their obstacles to overcome to further along the rally.