10 Jun 2013
Flash: The EUR/JPY sold off to cloud support
FXstreet.com (London) - Analyst teams at Commerzbank said that EUR/JPY on Friday eroded its 6 month uptrend, but has yet to close below this level.
They added that the trendline interesects at 127.60 and a close below here would leave the market vulnerable to losses to the base of its daily cloud support at 124.93 and Fibonacci support at 124.45. To the team, this is considered to be the break down point to 118.65/`119.12, the 38.2% retracement and the lows seen in February and April.
Downside Risk to EUR/JPY
They explained that given the 13 count on the weekly chart and the TD perfected set up, and the break of trendline support, risks are on the downside and a negative bias will remain while rallies are capped by the near term downtrend at 130.91.
They added that the trendline interesects at 127.60 and a close below here would leave the market vulnerable to losses to the base of its daily cloud support at 124.93 and Fibonacci support at 124.45. To the team, this is considered to be the break down point to 118.65/`119.12, the 38.2% retracement and the lows seen in February and April.
Downside Risk to EUR/JPY
They explained that given the 13 count on the weekly chart and the TD perfected set up, and the break of trendline support, risks are on the downside and a negative bias will remain while rallies are capped by the near term downtrend at 130.91.