Forex Analysis: EUR/JPY Classic Technical Report 12.21.2012

Prices are turning cautiously lower after putting in a Shooting Star candlestick, hinting a reversal may be brewing. Early signs of negative RSI divergence reinforce the possibility of a downside scenario. Initial support lines up at 110.71, the 14.6% Fibonacci retracement, with a break below that exposing the 23.6% mark at 109.62. Near-term resistance is at 112.49, the December 19 high.

Daily Chart - Created Using FXCM Marketscope 2.0

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

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