EUR/JPY 1H Chart 11/5/2012 8:15AM EST
Rising Trendline: The EUR/JPY fell Friday, despite a positive NFP, which usually ushers risk-on trading and a weak JPY. However, we continue to fall from a major declining trendline (going back to April 2011) now with focus on a rising trendline support going back to the 94.10 low in July 2012. A break below the 102 handle will probably be needed to clear below the trendlines support area.
Bearish breakout: A break below 102 open up a support pivot zone between 99.55 and 100.15, basically the 100.00 psychological level. A break below 99.50 exposes the 94.10 area, especially if the daily RSI reading also falls below 40.
Failure: At the moment, a key pivot in the short-term was established in the 103.30-103.35 area. A pullback above 103.50 should clear above this area and refocus the EUR/JPY on the falling trendline and recent highs at 103.94 and 104.38.
Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist for FXTimes – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
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