Investing.com - Financial Markets Worldwide

EUR/JPY Weekly Outlook

ByActionForex
Published 11/07/2011, 04:06 AM
Updated 03/09/2019, 08:30 AM
EUR/JPY
-

EUR/JPY rebounded strongly to as high as 111.57 last week but lost momentum ahead of 111.93 cluster resistance (50% retracement of 123.31 to 100.74 at 112.02). Near term outlook is mixed and we'll stay neural first. On the downside, below 106.49 minor support will bring another fall to 104.74 support first. Break there will indicate that rebound from 100.74 is finished and the larger down trend is likely resuming for another low. On the upside, above 109.24 will flip bias back to the upside for 111.93 cluster resistance to extend the corrective rebound from 100.74.

In the bigger picture, while the rebound from 100.74 was strong, there is no signal of completion of down trend from 2008 high of 169.96 yet. Also such rebound is so far corrective looking and affirm the medium term bearish case. We'd continue to favor more downside in EUR/JPY for an eventual break of 100 psychological level towards 100% projection of 139.21 to 105.42 from 123.31 at 89.52, which is close to 88.96 all time low. However, sustained break of 55 weeks EMA (now at 112.25) will raise the odd of trend reversal and will turn focus back to 123.31 resistance for confirmation.

In the long term picture, up trend 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. Hence, we'll look for reversal signal ahead of 88.96 low.

Please see the attached chart below.

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.