After the behavior that I register the couple EUR/JPY the days 16, 17 and 18 on March, it is obvious that "the technical analysis looks like a lost credit something of his value" as certainly it Jose Trecet indicates in his article "The yen before the intervention of the G-7".
The forecast of the behavior of any couple of Currencies this one naturally subject to multiple variables. Nevertheless, the current circumstances give as result that any comment - already does not say a prediction to itself - on the Yen, be for others risky.
Of any form, let's analyze the happened in September, 2010, when on the 15th the Bank of Japan decided to intervene to fit the price of the Yen.
In that occasion, the Yen had fortified to such a degree, which minor prices registered to 106 Euros for Yen, and before the intervention of the Box the price of the Euro was about 107.8 Euros for Yen.
To the advertisement of the intervention of the Box, I untie an Rising feeling that I last several days and take the EUR/JPY to the value of October 115.63 6, date from which The Market demonstrated to the BoJ the temporality of his intervention, so on December 28, the EUR/JPY was quoting in the same levels before September 15.
Last Friday, the decision to intervene in the adjustment of the price of the Yen was given in the Frame of a meeting of the so called one G-7, provoking that the Euro was reaching a maximum price of 115.54 Yens.
That says to us this value of 115.54 Euros for Yen, which certainly is practically similar to 115.63 Euros for Yen registered at the end of the effect of the intervention of the Box of last year? (To see attached graph).
That does not import all the Trillions of Yens is injected to the Market, the Euro will not be able to support a price before the Yen that overcomes the level of 116, while there are not modified the economic conditions of any countries that integrate the EU.
Then, which very possibly we see in shortly and probably medium term is to the Euro quoting with regard to the Yen in a very wide range of between 115 and 109 Euros for Yen and I hold to surprising sways provoked by aspects extra financial.
