Forex: EUR/JPY grinds back up to 107 after overnight drop
Forex pairs in this Article »
EUR/JPY
FXstreet.com (San Francisco) - EURJPY failed to sustain gains above 107.70 and saw a sharp retreat to levels back below 107 in overnight trade, managing to close the NA session down 0.9% to 106.80, its largest daily selloff since early November.
Looking at the daily timeframe, a modified Hikkake pattern was printed at 78.6% retracement resistance (111.41/94.10 drop), which suggests that bears are well positioned to defend the 108 figure and there may be scope for a deeper correction.
If the downward momentum persists, EURJPY may encounter heavy buying interest in the 105.60-80 area, which coincides with key retracement levels of the daily pin printed Nov 28; the pin remains in play given that trend momentum is medium-term positive. Further support is noted at 104.60 (Oct 23 high) and 103.80 (Sep 17 high). Should price attempt to regain Thursday's losses and push above the 108.00 mark, sellers may be found around 108.50 (Mar 22 low).
EURJPY is now quoted around 107, struggling to target higher levels so far in Asia.
Looking at the daily timeframe, a modified Hikkake pattern was printed at 78.6% retracement resistance (111.41/94.10 drop), which suggests that bears are well positioned to defend the 108 figure and there may be scope for a deeper correction.
If the downward momentum persists, EURJPY may encounter heavy buying interest in the 105.60-80 area, which coincides with key retracement levels of the daily pin printed Nov 28; the pin remains in play given that trend momentum is medium-term positive. Further support is noted at 104.60 (Oct 23 high) and 103.80 (Sep 17 high). Should price attempt to regain Thursday's losses and push above the 108.00 mark, sellers may be found around 108.50 (Mar 22 low).
EURJPY is now quoted around 107, struggling to target higher levels so far in Asia.
Free Annual Reports
