EUR / JPY is one of the more volatile currency pairs of the FOREX market, surpassed only by the GBP / JPY and perhaps matched by the EUR / USD.
Therefore, it is very interesting to note two factors that clearly show what the market sentiment on this currency pair, and in particular for the Yen.
Prime Factor
From the trading session in New York from March 18 until the start of the trading session in Tokyo from March 24, the EUR / JPY has maintained a lateral behavior within the range of 115.55 - 113.55 (yellow lines the chart attached).
Second Factor
The chart that accompanies this article is prepared on the basis of Japanese Candlesticks in a time frame of 4 pm in the graph you can see 11 candles on the type Doji, which have been marked with the letter D in white under each of the 11 candles.
Doji Candle is one in which the opening price and closing price are virtually identical, so that the body of the candle is almost non-existent or very small, it means that buyers and sellers are in balance. In a trading range, as that currently has the EUR / JPY, a Doji is neutral, as it reinforces the very same situation.
Therefore, the conclusion is that at present there is no indication on the tendency to take the EUR / JPY, the market is probably waiting to hear the news that are generated in Japan after the tragedy that struck this country, so you can define the immediate future of the Yen.
No easy task which is opposite the Bank of Japan will have to decide if it wants a weaker yen which benefits exports or a stronger yen to help you cope with the reconstruction of that country that even before the earthquake was third largest economy in the world.
