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Daily Forecast For EUR/JPY

ByIan Copsey
Published 06/06/2013, 05:38 AM
Updated 07/09/2023, 06:31 AM
EUR/USD
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USD/JPY
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EUR/JPY
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NOTE
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BIAS:

While 130.10-30 caps, we should see losses to 128.90-20 initially and lower later.

Resistance: 130.10-30 130.60-65 131.10 131.40
Support: 129.42 128.90-20 128.53-63 128.11

MAIN ANALYSIS: Losses seen to just below 129.51. However, I don't think this leg is quite complete. The current correction should ideally remain below 130.10-25 for losses to the 128.90-20 area. Here we should see a correction higher. The problem here is in recognising the depth. In general I feel the 130.10-30 area may well work again, but allow for the 130.60 pivot resistance. From this second corrective high we should then see losses below 128.90 and to the 128.11-128.63 area. Observe for bullish reversal indications.

COUNTER ANALYSIS: Only a break above 130.70 would concern and risk a move back to the 131.40 high at least. Note the 132.07 corrective high.
A direct break below 128.90 would extend losses into the 128.11-53 area. A break below 128.00 would be further bearish for 127.50 and 127.04.

MEDIUM TERM ANALYSIS:
June 5: I thought this had confirmed losses, but the 129.51 low was just a few points away from a valid projection and the 131.40 high a deep correction - one that should not break otherwise it'll send price higher. I'd still prefer the downside back to 129.51, and after a pullback there is a rather large range of targets tunning from 129.25 to 128.11. Given what should be the downside risk in both USD/JPY and EUR/USD I'd suggest caution and spotting the bullish reversal signals.

Only back above 131.50 and 132.56 would resurrect a retest of the 133.81 high.

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