EUR/JPY Strong Falling Wedge

The EUR/JPY conformed to the Falling Wedge Pattern this morning with a drop of over a 100 pips. The drop in the EUR/JPY pair can also be accounted to the strengthening of the Yen due to the decrease of carry trades as a result of the situation in the subprime market. Investors see a possible fall out of rates and currency depreciation as a result of the Bear Stearns situation.

The View:

by Sumant Yerramilly