 Hello, welcome to this week's CMC markets currency snapshot with myself Jasper Lawler. This week we're going to be looking at Euro Yen, so that's the Euro against the Japanese Yen currency pair. And the reason for that is it's really the center of the upcoming currency wars that are taking place in markets as both the Bank of Japan and the European Central Bank are engaged in a quantitative easing program in effect to try and devalue their currency. So who wins this battle is what we're going to look at next. So as is well known at this point, the European Central Bank just introduced a massive quantitative easing program with, although they won't admit it, part of the reason is to devalue the Euro and we've seen the Euro pound decline, the Euro dollar decline as well as the Euro Yen. In the case of the Euro pound and Euro dollar, it makes a bit more sense because there is a divergence of monetary policy. The Bank of England and the Federal Reserve of the US are looking to hike rates perhaps this year, whereas obviously the European Central Bank are not looking at a rate hike anytime soon. In fact, they're in the opposite direction and printing money to stimulate the European economy. So those make sense. The picture is just a little less clear when it comes to the Euro Yen because Japan is engaged in a similar policy. They up the ante towards the end of last year by increasing their quantitative easing program. They have not done so in the subsequent meetings and so now the question will be in terms of the direction of this currency pair, which Central Bank gets more aggressive with their policy. The European Central Bank's got the momentum right now because their program is new and if you look at the chart which we'll be showing in a minute for the Euro Yen, you can see there's been a massive rally in the Euro against the Yen because of this devaluation of the Japanese Yen through quantitative easing. So can the European Central Bank go a good way to undoing all those gains? Well, that is the question. Now let's have a look at the chart of the Euro Yen. So this is a longer term perspective. It's the weekly candlestick chart of the Euro Yen and I've drawn a couple of sets of Fibonacci levels on here. The first of which is a level drawn out from the lows that we saw around sort of March 2013. These levels have worked pretty well in conjunction with some highs and lows to where the last couple of lows in the Euro Yen has hit, namely this 50 and 61.8% Fibonacci level. So we're pulling higher from that 61.8% at the moment. So a break of there to me opens up the possibility of a much bigger decline down towards the beginning of that Fibonacci series around 119 or perhaps just a bit above that would be the 50% retracement of this larger move that began around sort of August 2012. So these are the levels to keep in mind. What we have to first look at though is the broken trend line that you can see on the chart here. That's pretty much pointing us towards the end of the uptrend. We in fact did make a new high above that. But what we've seen since is we've basically moved into a sideways range. So what we've got to assume most likely is that this sideways range is going to maintain as we wait to see which of these central banks comes out ahead in terms of the most aggressive policy to devalue their currency. And so then we really have to look at this, the peak that we recently made around 150 and then the recent base that we formed just last week, which one of those levels is the first to give? You would assume it's going to be the bottom level at this point because of the newness of the ECB policy and because we're at that level right now. But it may well be that we get another run up to this 150 again. OK, that's it for this week. CMC markets currency snapshot with the euro yen. The outlook for this currency pair is very much dependent on the aggressiveness of these two central banks and their quantitative easing policy. Hence we're seeing the chart right now in this kind of sideways motion. So should you have any comments on the chart, feel free to reach me at my Twitter handle below.