12 May 2014
EUR/JPY is on recovery mode
FXStreet (Moscow) - EUR/JPY tries to recover early in Asia as the cross opened at 141.10 and climbed to 141.33
Rush to new lows
EUR/JPY came close to the lower side of the range settled in mid-March. The cross tried to break below the pivotal level of 140.00 and set the weekly low at 139.86, but the movement was to sustained and EUR/JPY retraced to 140.12. It is worth noticing that a clear break below this level will open up the way to the mid-term bearish target at 137.50. Today the calendar is rather light, so the intraday dynamic will be influence mostly by technical factors and risk sentiments. The cross will continue its trip to the North if geopolitical escalation drive JPY higher across the board. The upside correction is likely to be limited by Friday’s high at 140.79.
What price levels and patterns have to be considered?
Current price is 140.38, with resistance ahead at 140.43 (Daily High), 140.69 (Daily Classic R1), 140.80 (Weekly Classic PP), 140.84 (Yesterday's High) and 141.22 (Hourly 100 SMA).
Next support to the downside can be found at 140.32 (Hourly 20 EMA), 140.28 (Daily Classic PP), 140.14 (Monthly Low), 140.14 (Weekly Low) and 140.05 (Daily Open).
Regarding candlestick formations, we can see Hammer formation on the 1-hour .
Rush to new lows
EUR/JPY came close to the lower side of the range settled in mid-March. The cross tried to break below the pivotal level of 140.00 and set the weekly low at 139.86, but the movement was to sustained and EUR/JPY retraced to 140.12. It is worth noticing that a clear break below this level will open up the way to the mid-term bearish target at 137.50. Today the calendar is rather light, so the intraday dynamic will be influence mostly by technical factors and risk sentiments. The cross will continue its trip to the North if geopolitical escalation drive JPY higher across the board. The upside correction is likely to be limited by Friday’s high at 140.79.
What price levels and patterns have to be considered?
Current price is 140.38, with resistance ahead at 140.43 (Daily High), 140.69 (Daily Classic R1), 140.80 (Weekly Classic PP), 140.84 (Yesterday's High) and 141.22 (Hourly 100 SMA).
Next support to the downside can be found at 140.32 (Hourly 20 EMA), 140.28 (Daily Classic PP), 140.14 (Monthly Low), 140.14 (Weekly Low) and 140.05 (Daily Open).
Regarding candlestick formations, we can see Hammer formation on the 1-hour .