EUR/JPY base now complete
01 April 2010
The FX Trader's view -
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WEEKLY CHART: Recent losses approached the 76.4% 118.45 pullback level, which is sometimes effective in EUR/JPY - we have been on the lookout for a rebound phase, which now looks to be underway.
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DAILY CHART:
Last time we noted that the s/term structure was suggesting bears were losing interest - ahead of the 118.45 76.4% level.
In the FX Specialist Guide we pointed out possible support from a very s/term 76.4% pullback level around 121.00, which in fact worked nicely - this proved the precursor to a break of resistance in the 125.20s.
A base is now complete, with focus turning first to temporary resistance from the 126.89 Nov-09 low and bear channel top projection just above.
However, the strength should be there to achieve higher values, though, so note the higher 130.90/131.30 Fibo retracement area which, in fact, coincides with an old textbook measuring technique.
A collapse back below 121.00 would negate the bull signal,
and this level now provides a risk level for buyers on dips. |
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Philip Allwright
Mark Sturdy
Seven Days Ahead
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