Magazine article Modern Trader

Techtalk: From Bear to Bull for Euro/yen

Magazine article Modern Trader

Techtalk: From Bear to Bull for Euro/yen

Article excerpt

Euro/yen appears to have formed a base in the 95-100 region, as we discussed in February (see "Market Strategy: Fiscal turn will lead to euro/en tum," Futures, February 2000). The fundamental and technical cases are straightforward. Fundamentally, Europe offers a more attractive backdrop than Japan in terms of just about anything, including interest rates, growth potential, fiscal position, banking stability, deregulation and exporter competitiveness.

The technical outlook is also compelling. The attached Elliott Wave count suggests that the euro/yen bear market is ending. The big issue is whether there will be an extended basing-out period or a more imminent start of the inevitable bull market.

An A-B-C corrective downwave was completed in May at 95 per euro. As would be expected in a corrective upwave, primary wave B unfolded in three smaller intermediate waves a-b-c as euro/yen rallied from 123 to 167. The impulsive primary wave C then played out in five smaller intermediate waves 1-2-3-4-5 as euro/yen fell from 167 to 95. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.