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3 Jun 2014
EUR/JPY bids coming into question
FXStreet (Guatemala) - EUR/JPY is trading at 139.66, up 0.34% on the day, having posted a daily high at 139.80 and low at 139.06.
EUR/JPY has continued to recover off its Fibonacci support at 137.86 (78.6% retracement) and Karen Jones, chief analyst at Commerzbank explained it’s recent daily low of 137.98 was accompanied by a divergence of the daily RSI that allowed for a near term rebound; “The Elliott wave count of the daily chart is suggesting that we should allow for a rally to the 140.05 zone”. She added that this move is regarded as corrective and will make little impact on their negative bias while capped by 141.00. “Our initial downside target is the 136.25 2014 low. Although it should be noted that the market recently completed a symmetrical triangle and this triangle measures to approximately 130, which is achievable by the end of the year”.
EUR/JPY Levels
Current price is 139.67, with resistance ahead at 139.75 (Daily Classic R2), 139.80 (Daily High), 140.12 (Weekly Classic R2), 140.16 (Daily Classic R3) and 140.65 (Daily 100 SMA). Next support to the downside can be found at 139.48 (Daily Classic R1), 139.48 (Daily 20 SMA), 139.46 (Hourly 20 EMA), 139.44 (Weekly Classic R1) and 139.35 (Yesterday's High).
EUR/JPY has continued to recover off its Fibonacci support at 137.86 (78.6% retracement) and Karen Jones, chief analyst at Commerzbank explained it’s recent daily low of 137.98 was accompanied by a divergence of the daily RSI that allowed for a near term rebound; “The Elliott wave count of the daily chart is suggesting that we should allow for a rally to the 140.05 zone”. She added that this move is regarded as corrective and will make little impact on their negative bias while capped by 141.00. “Our initial downside target is the 136.25 2014 low. Although it should be noted that the market recently completed a symmetrical triangle and this triangle measures to approximately 130, which is achievable by the end of the year”.
EUR/JPY Levels
Current price is 139.67, with resistance ahead at 139.75 (Daily Classic R2), 139.80 (Daily High), 140.12 (Weekly Classic R2), 140.16 (Daily Classic R3) and 140.65 (Daily 100 SMA). Next support to the downside can be found at 139.48 (Daily Classic R1), 139.48 (Daily 20 SMA), 139.46 (Hourly 20 EMA), 139.44 (Weekly Classic R1) and 139.35 (Yesterday's High).