By Yan Petters – The EUR/JPY fell about 1,800 pips in merely two months since April; however the bearish momentum seems slowing. For the past month, the pair has been trading within a restricted range, and now the price is approaching its lower boarder. Will the EUR/JPY break the range?
• The chart below is the EUR/JPY 1-day chart.
• The technical indicators used are the Bollinger Bands, the Slow Stochastic, the MACD and the Relative Strength Index (RSI).
• The pair has been trading within a restricted range recently, between the 108.00 and the 113.50 levels.
• At the moment, the RSI has failed to enter the ‘Over-Bought’ zone, and is pointing down. This indicates that the bearish move has potential to proceed.
• The MACD seems about to complete a bearish cross. If the cross will be completed, this will further verify that the bearish pressure is getting stronger.
• The next significant support level is located at the lower boarder of the range, at the 108.00 level. If the pair will breach this level, it has potential to drop towards the 106.50 level.
• However, if the pair will fail to cross the support level, it might bounce back up, towards the upper boarder of the range, and might reach as high as the 113.50 level
Forex Market Analysis provided by Forex Yard.
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