Good Afternoon,
This mornings article covered the fundamentals so we can go directly
to technicals. I know that the Fed Minutes showed a disconnect as to
when the Central Bank's easing plan should end, but quite honestly, a
move from 1400 to 1530 seemed to be "non-technically", "overdone".
"Overdone" meaning, to short the market wasn't on a technical level, it
was solely on a "overbought" level. We know how that theory has worked
out as of late.
But seriously, there were some signs.
Posted By:
Brian Kahn
Brian provides regular commentary focusing on the relationships between various financial markets. An experienced trader and portfolio manager with over 15 years in the markets, Brian relies on fundamental and technical analysis to create trading plans for each and every market entry.
EUR/JPY Sinks into Uptrend Support
It’s an uncomfortable time to play some of the trends that the year started off with. The yen weakness, kiwi strength, and euro strength stories have all unraveled this week. That’s not to say that longer-term these trends are not intact – they are – but the corrections that are triggered aren’t simply technical. They fundamentals surrounding these pairs has shifted. How temporary are they is the question but the in meanwhile we can either sit on the sidelines or look at these as opportunities.
Raghee Horner