EUR/JPY
New life-time highs for the EUR/JPY underpinned by the hawkish Trichet and buying by US invesment houses and hedge funds building new carry trade positions. Some market participants expect FX warning out of ECB, Eurozone finance ministers and ECB President Jean-Claude Trichet in particular, who may need to warn on “brutal FX” again and as well as playing down talks of more than ECB rate hikes. I wonder what is his purpose? Usually ECB is always behind the developments in the economy and probably will cut rates too late to prevent slowdown in Eurozone growth.
The only restistance levels for EUR/JPY are the options barriers @ 169.50 and 170.00. Support is @ 168.10 and 166.75