Investing.com - Financial Markets Worldwide

The Mild Recovery

ByActionForex
Published 12/07/2011, 03:53 AM
Updated 03/09/2019, 08:30 AM

Daily Pivots: (S1) 103.74; (P) 104.04; (R1) 104.44;

EUR/JPY recovers mildly ahead of 103.33 minor resistance and intraday bias remains neutral for the moment. Another rise cannot be ruled out with 103.33 minor support intact. But the choppy structure of the recovery from 102.48 suggests it's merely a correction. Hence, even in case of another rise, upside is expected to be limited by 50% retracement of 111.57 to 102.48 at 107.25 and bring fall resumption eventually. Below 103.33 will flip bias back to the downside and send EUR/JPY through 102.48 to retest 100.74 low. However, sustained break of 107.25 fibo level will shift favor to the case that rise from 102.48 is indeed the third leg of the consolidation from 100.74 and would possibly send the cross through 111.57 before completion.

In the bigger picture, there is no signal of reversal yet with EUR/JPY staying below the falling 55 weeks EMA. Down trend from 2008 high of 169.96 is still in progress and should take out 100 psychological level eventually towards 100% projection of 139.21 to 105.42 from 123.31 at 89.52, which is close to 88.96 all time low. Though, sustained break of 55 weeks EMA (now at 111.28) will raise the odd of trend reversal and will turn focus back to 123.31 resistance for confirmation.

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