A corrective/consolidation activity between 155.24 and 158.28 is likely for a while.
While below 158.51 it is more likely to fall further towards 157.64 or 157.37. Premature rise above 158.51 could see it rising above 159.06 zone.
The drop from 167.64 can be viewed as a series of 1st and 2nd waves (following a major truncated 5th wave). Therefore, the EURJPY is entering a 3rd of a 3rd wave decline; often the fastest part of the decline. Price may accelerate lower now but an alternate count allows for a rally above 159.20 to complete a small correction. The larger bearish bias is intact as long as price is below 161.40.
EUR/JPY - Euro Yen
Short term (Intraday)
158,25. EUR JPY is in a consolidation after the last bullish movement. EUR JPY moves without trend and swings around exponential moving averages (EMA 50 and 100). The volatility decreases. Bollinger bands are tightened. Oscillators are neutral. The price should find a resistance below 159,00. The trend should reverse. The target is expected at 156,00.
158,70 - 159,00
157,65 - 156,35
eur/jpy is heading for 160 ,all the two currencies are strong at this time ,making it possoble to predict
Forex Depth Analysis: EUR/JPY
Daily Forex Technicals | Written by Finotec Group | Mar 12 08 09:03 GMT |
Forex Depth Analysis: EUR/JPY
Will Euro continue to strengthen against the Japanese Yen?
The yen rose after Japan's economy grew faster than expected in the fourth quarter and on speculation exporters bought the currency following its biggest slump in six months.
The currency, which dropped 1.6 percent against the dollar yesterday, climbed as a revised Japanese government report showed gross domestic product expanded an annualized 3.5 percent in the fourth quarter.
The euro strengthened against the dollar on speculation European Central Bank President Jean-Claude Trichet will warn of inflation risks today.
The following technical analysis gives us a detailed lookout on what is expected to happen to EUR/JPY
The buying point is at 158.30; based on a clear uptrend.
Previous resistance is the take profit at 159.14
Fibonacci 38.2% is the stop loss at 157.60
The selling point is at 157.40; based on a break of a strong support level.
Fibonacci 23.6% is the take profit at 156.45
Previous resistance is the stop loss at 157.80
To strengthen our analysis; we use many other indicators, starting with MACD (Moving Averages convergence divergence); we notice the crossing of MACD line to the signal and is pointing upwards. In order to find the power of the market, we use RSI (Relative Strength Index).With RSI; we can determine that the market is in an uptrend.
The ROC is very important to understand the demand in the market and as we see on the graph it is in a bullish direction with a break of the equilibrium level. The Stochastic oscillator breaks 20% line and continues to move higher.
* The following analysis is for information only; Finotec is not responsible for any decisions or misinterpretations based on the given text.
155.30. Overall structure is bearish. Decelerating momentum could attract it towards supports at 154.50 or 154.23. Major support is clustered around 153.47 limit.