Weekly Forex Update: EUR/JPY

The daily time frame for the Euro versus the Japanese Yen has been steadily making new lows each year, the most recent being the 110.62 low on May 6. Previous lows include 113.64 on October 27, 2008 and 112.10 on January 21, 2009. The continual push lower shows that bearish sentiment has not shifted, and that the downtrend persists. The Falling Wedge pattern that broke on May 5 (when prices traded lower through 122.80) was triggered the day before the dramatic sell-off in the U.S. equities market. Finding support since then has been a question of whether prices will indeed trade down to the 110.62 low that was reached during the frenzy of the equities meltdown.