Despite what now looks like a violent shakeout in the Euro (usually strength here means global “risk on”) versus the Japanese Yen (usually strength here means global “risk off”) in late-February, you can see on the updated weekly chart of the Euro/Yen cross that the bull flag thesis is now intact. Bears had their chance to push the Euro lower and the Yen higher, but failed miserably to follow-through on that glorious short-term spike lower.
Going forward, a long-term bullish reversal in this Euro/Yen cross continues to be an inter-market issue to observe as a proxy for healthy global risk appetite.
___________________________________
