Investing.com - Financial Markets Worldwide

After Dipping To 104.61, EUR/JPY Formed Short Term Bottom: April 23, 2012

ByActionForex
Published 04/23/2012, 01:52 AM
Updated 03/09/2019, 08:30 AM
EUR/JPY
-

After dipping to 104.61 last week, EUR/JPY formed a short term bottom there and recovered. Initial bias is mildly on the upside this week and further rise could be seen back to 111.43/57 resistance zone. So far, rise from 104.61 is not impulsive looking and could indeed turn out to be a correction. In any case, sustained break of 111.43/57 is needed to confirm resumption of rally from 97.03. Otherwise, we'd expect more corrective trading below 111.43 in near term, possibly with another fall to 104.61 and below. On the downside, below 106.50 minor support will flip bias back to the downside to extend the decline from 111.43.

In the bigger picture, the question remains on whether the downtrend from 169.96 has completed 97.03 and the picture is unclear. There was loss of medium term downside momentum as seen in convergence condition in weekly MACD. But rebound from 97.03 lacked sustainable strength to break through 111.57 yet. We'll stay neutral first. Note that firstly, while another fall cannot be ruled out yet, the break of 97.03 could be marginal. Meanwhile, sustained trading above 111.57 should raise much odds for the case that EUR/JPY's trend is reversing.

In the long term picture, uptrend from 88.96 (00 low) has completed at 169.96 and made a long term top there. Based on the five wave structure of the rise from 88.96 to 169.96, we're favoring that fall from 169.96 is corrective in nature. Current development argues that 97.093 might not be the bottom yet, but reversal should be around the corner considering bullish convergence condition in monthly MACD.
<span class=EUR/JPY H4" title="EUR/JPY H4" width="600" height="600">
<span class=EUR/JPY 1" title="EUR/JPY 1" width="600" height="600">
<span class=EUR/JPY 2" title="EUR/JPY 2" width="600" height="600">
<span class=EUR/JPY 3" title="EUR/JPY 3" width="600" height="600">

Latest comments

Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.