By Yan Petters
The EUR/JPY pair saw unusual bearishness over the past five weeks. The pair dropped about 850 pips during this period of time, despite a 450 pips correction in the middle. Currently, a technical analysis of the daily chart suggests that further bearishness might be expected, with potential to take the pair as low as the 106.00 level.
• The chart below is the EUR/JPY daily chart by ForexYard.
• The pair has recently fell towards the 107.55 level, marking a 3-month low.
• For the past week, the pair has been trading within a restricted range, between the 107.50 and the 109.00 levels.
• However, a bearish cross of the Slow Stochastic is now indicating that another bearish move might be impending.
• The MACD continues to point down, indicating that the bearish trend has more steam in it.
• The RSI continues to float below the 30-line within the over-sold section. This also indicates that the bearish move might not be over yet.
• The pair is currently trading near the 107.95 level and is likely to test the 107.50 support level later on today.
• If the pair will manage to fall below the 107.50 level, its next significant support level is only placed at the 106.70 level. The next stop after 106.70 looks to be at the 106.00 level, yet this is more likely to take place within a day or two.
• If the pair will fail to breach through the 107.50 level, its next resistance levels are located at the 108.30, 109.00 and 110.00 levels.
EUR/JPY – Daily Chart
Forex Market Analysis provided by ForexYard.
© 2006 by FxYard Ltd
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