A recent Abe (Abenomics) re-election in Japan, coupled with an additional 20 more seats of his supporting coalition added to the lower house will certainly keep the ‘risk on’ crowd adventurous, This unlike most other currencies, will actually weaken the safe haven Yen. At least in the short term.
On the flip side (EUR) Draghi’s consistent denial of the obvious, and use of any minor concerns, regardless of how miniscule it may be, is going to have to at least attempt to take his foot off the throttle, or begin to loose all credibility.
I’m not expecting a major bullish move here because of the ECB’s creative disinformation speeches. However, I do anticipate a 200 pip rally, based on the Yens weakness, some decent releases out of the Euro Zone, and a nice technical set up.
Entry – I’ll be lurking for a bounce off the 133.00 weekly central pivot, which should coincide with an oversold 4hr stoch. My target will be the weekly sell zone area around the 135.00 monthly R1.