27 Nov 2013
EUR/JPY stuck around yearly highs above 137.40
FXstreet.com (Chicago) - EUR/JPY maintains earliest rally’s gains above the 137.40 front after retracing from the 138.00 front.
Perspective
According to Valeria Bednarik, FXstreet.com analyst, “the EUR/JPY consolidated in a tight range, still holding above 137.10 23.6% retracement of its latest bullish run. The hourly chart shows price still above bullish moving averages, while momentum stands around its midline and CCI turns lower, reflecting the lack of interest around current levels. In the 4 hours chart indicators continue diverging from price, heading strongly south and approaching their midlines and suggesting some downward correction ahead moreover if mentioned support gives up. To recover the upward momentum, price needs to accelerate beyond 138.10 strong static resistance area.”
EUR/JPY Technical Levels
Price action reveals the pair stalls after retracing, similarly to the pound/yen cross’s movement. Two days ago, the rally that started last November 7th (lows) paused and the price finds a plateau around the 137.40 zone. Still sustaining 3 and a half years highs, the pair is offered at 137.44 and oscillates between the supports aligned at 137.10 (November 24th lows), 136.54 (November 21st highs) followed by 135.92 (October 17th highs) and the resistances set at 138.00 (key psychological resistance), 138.91 (July 26th highs 2009) ahead of 139.90 (June 22nd lows 2006).
Perspective
According to Valeria Bednarik, FXstreet.com analyst, “the EUR/JPY consolidated in a tight range, still holding above 137.10 23.6% retracement of its latest bullish run. The hourly chart shows price still above bullish moving averages, while momentum stands around its midline and CCI turns lower, reflecting the lack of interest around current levels. In the 4 hours chart indicators continue diverging from price, heading strongly south and approaching their midlines and suggesting some downward correction ahead moreover if mentioned support gives up. To recover the upward momentum, price needs to accelerate beyond 138.10 strong static resistance area.”
EUR/JPY Technical Levels
Price action reveals the pair stalls after retracing, similarly to the pound/yen cross’s movement. Two days ago, the rally that started last November 7th (lows) paused and the price finds a plateau around the 137.40 zone. Still sustaining 3 and a half years highs, the pair is offered at 137.44 and oscillates between the supports aligned at 137.10 (November 24th lows), 136.54 (November 21st highs) followed by 135.92 (October 17th highs) and the resistances set at 138.00 (key psychological resistance), 138.91 (July 26th highs 2009) ahead of 139.90 (June 22nd lows 2006).