Euro Rallies Against Yen on EU Contingency Plan for Greece - by Chris Brueck
Euro Event Summary
The Euro is in rally-mode against the Japanese Yen as the EU's has promised a contingency plan to greatly reduce the immediate threat of a Greek default.
The plan states that the EU would provide bilateral loans to Greece and that the IMF would assist if there is no other option.
However, the plan doesn't state which circumstances must exist in order for aid to be provided.
In addition, not every member country has agreed to the assistance, and no interest rate has been determined for these loans.
So, these loans still remain theoretical for now.
Technical Analysis - Euro vs Japanese Yen (see chart)
This pair is pushing to reverse it's previous down-trend. We see strong resistance in the 125.50-75 range.
Technically, the reversal could come in the form of a H&S Bottom with the current FX rate testing the neckline.
A sustained break above 125.50-75 range would be enough confirmation for us to target the next major resistance zone of 127.00-127.15.
A sustained break above the 127.00-15 resistance zone would confirm us a target to the minimum measured move area of 130.00-15.
http://www.goldcoastam.com/blogpix/eurjpy03292010.GIF
Gold Coast Asset Management is a leading investment manager for institutions, individuals and financial intermediaries, worldwide. Investors from hundreds of countries around the world have access to large insurance protection for their margin deposits.
For more information visit: www.GoldCoastAM.com
EUR/JPY - Follow Up: Head and Shoulders Bottom
Update: The EUR/JPY pair reacted to the H&S Bottom neckline, suggesting to us that there is ample supply of sell orders in that area.
To reiterate, any type of sustained break above 125.50-75 zone would confirm us a short term correction to the upside,
as short sellers cover their positions and push the FX rate higher.
Our resistance points and targets remain the same and are available below in the original post.
Gold Coast Asset Management is a leading investment manager for institutions, individuals and financial intermediaries, worldwide.
Investors from hundreds of countries around the world have access to large insurance protection for their margin deposits.
For more information visit: www.GoldCoastAM.com
EURJPY presenting another buying opportunity
For traders who missed opportunities to buy on the upside breakout,
the EURJPY is presenting another buying opportunity on its first correction
since the sustained break above the neckline.
%R indicator is in oversold territory and price action is stalling in
a support area 125.00-25 just above the neckline.
On the way up, watch for resistance around 127.75-128.00. A sustained
break above the resistance zone should push price action to our minimum
target of 130.00-15 in a short amount of time.
Gold Coast Asset Management is a leading investment manager for institutions, individuals and financial intermediaries, worldwide.
Investors from hundreds of countries around the world have access to large insurance protection for their margin deposits.
For more information visit: www.GoldCoastAM.com
http://www.goldcoastam.com/blogpix/eurjpy04062010.GIF
