EUR/JPY 1H Chart 7/25/2012 11:40AM EDT
The EUR/JPY is off a 12-yr low, and holding above 94.00 this week so far. It is also held below 95.22, establishing a near-term consolidation range seen in the 1H chart. If we break the range into 3rds, we are trading in the top 1/3 of the range right now, which means there is a tendency to return back toward middle and therefore the market has a near-term bearish tendency at the time of the screenshot, though there is near-term upside risk to the range resistance at 95.22.
IF we get a bout of risk-on trading, and EUR/JPY pops up above 95.22 AND the declining channel resistance, we expose an upside correction toward 98.50, a previous support pivot. The 200-HR SMA resides here as well as the 61.8% retracement of July’s bear run (98.60). Before these resistance factors, we should probably monitor the 96.15 and 97.35 pivots as well.
EUR/JPY 4H Chart 7/25/2012 11:45PM EDT
Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist for FXTimes – provider of rex News, Analysis, Education, Videos, Charts, and other trading resources.
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