EUR/JPY is making a run at its 200-day moving average again today. It’s last probe of that line came in early April and ended in failure and prompted a 12-yen slide in the cross. It is instructive to look at the lat time EUR/JPY was above the 200-day average. It was back in August of last year. It dipped though the average (then at 162.15!) and did not look back for more than 6 months.
The average comes in today at 133.17. A sustained break back above can be read as a sign that the worst of the global economic carnage is behind us. It is the equivalent to the 875 level I’ve been prattling on about for a month…
Next up for the market, Obama speaks on closing offshore tax loopholes for US corporates.
