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EUR/JPY Daily Chart 11/8/2012 3:35PM EST

EUR/JPY 11/8/2012 daily chart

Broken Trendline: Today after some initial bounce after the ECB meeting and press conference, the EUR/JPY slid further away from the 102 handle, showing a clear break below the rising trendline support, as seen in the daily chart. The break below 1.02 also pushes below the 200-dqay SMA, opening up some retracement targets, the first one being 100.58, 38. 2%. Below that there is a support pivot at 100.14. These are conservative targets. If the market can hold below 102, the focus remains bearish with further room to the downside.

50% retracement at 99.34 to 99.55 pivot is a valid target for the current bearish outlook. A slightly more aggressive target is the 98.00 handle to 98.10, 61.8% retracement.

Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist for FXTimes – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.

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