EURJPY Classic Technical Report 08.10.2012

Prices put in a Bearish Engulfing candlestick pattern below falling trend line resistance set from the March 21 swing high (97.21), a barrier reinforced by the 23.6% Fibonacci retracement at 98.19, hinting a move lower is ahead. Near-term support is at 96.63, the 14.6% retracement, with a break below targeting swing lows at 94.91 and 94.10. Alternatively, a break above 98.19 targets the 100.00 figure and the 38.2% level at 100.72.

Daily Chart - Created Using FXCM Marketscope 2.0

--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com

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