Technical analysts at Mizuho Corporate Bank believe that the single currency may fall to 2010 minimum versus yen as it didn’t manage to break through the Ichimoku Cloud.

As it may be seen on the daily Ichimoku chart, the first leading-span line, which forms the lower part of the Сloud, has limited the advance of euro since the end of November. As a result, the pair EUR/JPY may fall to last year’s minimum at 105.44 yen if it gets down below the so-called base line at 109.51 yen.

The specialists note that the euro’s bearish trend isn’t over yet, although the markets might have thought it will continue to rise after last week’s 3.4% rally, the biggest advance since 5 days ended September 17.



Chart. Daily EUR/JPY

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