Why I would be bullish on the Yen and bearish on the Euro?

The Deception of Long Term Euro Support

EURO VS YEN

• Simplified Technicals
• Mid Range Challenges
• Yen is the Overriding factor
• Should follow sequence without too much difficulty

On the far left edge of this chart (daily) you can see the type of pattern that occurred during the 2015 to 2016 plunge of the EUR/JPY.  So since we are comparing these moments of time lets look at the levels between 135 and 137.50 shaded in red and look to the late summer of 2015 to a guide as to what might repeat

I believe the pattern has already set in, and its only about a third completed.  

The 127.50 might deceive bears as it may turn out to be a bear trap (Euro at significant support levels) when comparing the Euro to many other currencies some of the short term issues are in the process of being priced in so at the moment it may revive itself for a quick burst before reaching a faster downside momentum

Whether the Yen gets stronger tomorrow or not, we still think that the fuel to the fire behind the continuation of this sell off is BECAUSE of the Yen or is exacerbated by a combination of Yen strength and Euro weakness; the timing of these challenges is to be determined  

The sequence back in 2015 follow this type of course in terms of its point declines and rises from the summer of 2015 to May of 2016

-600, +500, -698, +515, -822, +548, -1032, +575  etc etc 

And followed a similar pattern until  -1229 at the absolute bottom where the Euro bears capitulated

This most recent plunge was 411 pips and it has historically acted well around 127.50 so I invite any bounces to enable us to get great short entries on the back of a unusually strong Yen.