23:53 EUR/JPY: Still Thin But Relative Stability Eyed Today Tokyo, March 21. With most major markets closed today for Good Friday, EUR/JPY is likely to re- gain some measure of stability. It currently trades 153.25/30, roughly in the middle of the 151.70-155.17 range seen yesterday in London and New York. The market does remain thin but the lack of participants and expectations that early trading in Tokyo will be dominated by importer settlements into the fix will likely give the cross some measure of stability.
On a technical level, the 151.70-85 region looks to be shaping up as key support. Along with the low overnight, this area is now a double bottom with the low of 151.82 on Monday. A break below could trigger quite a few stops and fresh sales as it would confirm for many the piercing of the neckline of a head-and- shoulders pattern in development since January 22 when it traded up to create the first shoulder from 152.10 to the mid-159 level on January 30. After falling towards 154.00, it created a head topped off ahead of 161.50 on February 27. Falling off from this level, many see a right shoulder created on the bounce to just above 159.00 on March 5 and 12. If confirmed, a nine big figure decline in EUR/JPY could be in store. Whatever the case, key support is seen at 151.70-85. Topside, resistance is eyed towards and above 155.00, highs from overnight.
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