Forex Flash: Be wary of near term EUR/JPY correction – Commerzbank
Forex pairs in this Article »
EUR/JPY
FXstreet.com (Barcelona) - Karen Jones, Head of Technical Analysis at Commerzbank has taken a look at EURJPY from a technical perspective.
Jones notes that the pair traded sideways yesterday, holding just below 107.73/108 which is the 78.6% retracement and April High. Consequentially, she is keeping her outlook unchanged and she remains wary of a short term corrective phase. Jones notes the TD perfection set up and the 13 count on the daily which typically denotes likely exhaustion and consolidation on a chart. Together with the divergence of the daily RSI suggests caution .
Jones continues to write, "We would like to see a close above here to confirm upside intent. Dips will find initial support at 104.59/47, the October peak ahead of 102.50, the 38.2% retracement of the move up from the July low." Jones is currently holding her small shorts from 107.50 and looking to add to her position at 107.75, a stop at 108.05 and a target of 104.60.
Jones notes that the pair traded sideways yesterday, holding just below 107.73/108 which is the 78.6% retracement and April High. Consequentially, she is keeping her outlook unchanged and she remains wary of a short term corrective phase. Jones notes the TD perfection set up and the 13 count on the daily which typically denotes likely exhaustion and consolidation on a chart. Together with the divergence of the daily RSI suggests caution .
Jones continues to write, "We would like to see a close above here to confirm upside intent. Dips will find initial support at 104.59/47, the October peak ahead of 102.50, the 38.2% retracement of the move up from the July low." Jones is currently holding her small shorts from 107.50 and looking to add to her position at 107.75, a stop at 108.05 and a target of 104.60.
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