Forex Technical Update

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EUR/JPY 1H Chart 11/5/2012 8:15AM EST

EUr/JPY 11/5/2012 daily chart

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.

Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.

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