EUR/JPY: Christmas Gap in Jeopardy on Break Below YTD Low
Like all other currencies, the euro surged against the yen throughout Q4 2012. The big rally has predictably put rates in overbought territory (with the daily Slow Stochastics %K above 80) for most of the past two months. However, Slow Stochastics dropped back below 80 this week, suggesting that the long awaited pullback may be beginning. Looking at the chart, the pair may have room to pullback all the way down to fill the post-Christmas Day gap at 112.00.