Forex: EUR/JPY still under bear pressure; risk weighs
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EUR/JPY
FXstreet.com (Barcelona) - The EURJPY pair has touched new 3-week lows this Thursday afternoon in Asia, as looming U.S. fiscal concerns and a deteriorating European economy fuels a broad contraction in investors' appetite for risk.
Price has fallen as low as 101.73 so far today, and last exchanges at 101.80, down around 0.4% from the North American close. In an earlier analysis of EURJPY, Ian Copsey, Market Analyst at Harmonic Elliott Wave says the following about potential downside price action: "A break below 101.20 would surprise but there's still the 100.80 and 100.48 areas that should be considered in a deeper correction. Only below there would risk a retest of the 100.15 corrective low and potentially the 99.63 low."
The 50-day EMA is supporting spot for the time being, but the recent hit to sentiment is expected to continue into the sessions ahead. Other bearish targets are noted at 101.10 (100-day EMA) and 100.55 (38.2%, 94.10/104.57 rally), while recoveries may encounter resistance at 102.15 (23.6%) and 102.50 (Oct 29 low).
Price has fallen as low as 101.73 so far today, and last exchanges at 101.80, down around 0.4% from the North American close. In an earlier analysis of EURJPY, Ian Copsey, Market Analyst at Harmonic Elliott Wave says the following about potential downside price action: "A break below 101.20 would surprise but there's still the 100.80 and 100.48 areas that should be considered in a deeper correction. Only below there would risk a retest of the 100.15 corrective low and potentially the 99.63 low."
The 50-day EMA is supporting spot for the time being, but the recent hit to sentiment is expected to continue into the sessions ahead. Other bearish targets are noted at 101.10 (100-day EMA) and 100.55 (38.2%, 94.10/104.57 rally), while recoveries may encounter resistance at 102.15 (23.6%) and 102.50 (Oct 29 low).
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