Forex Technical Update
The EUR/JPY remains bearish. 1) The 1H chart shows the market staying below the 200 period simple moving average. 2) Price action is breaking below a consolidation pattern from last week. 3) RSI never sustained a break above 60, and has returned to tag 30, showing bearish continuation momentum.
The daily chart also carries a bearish stance as the market trades below the 200 day SMA with the RSI failing to break back above 60, and now attempting to return below 40. Near-term support exists at 103.08, 78.6% retracement. Below 103, we open up the 2011 low at 100.78, and a swing projection to 100.30. Although the prospect of slipping below 100 is possible, it should probably be the maximum projection for the current swing seen in the daily chart.
Fan Yang CMT is the Chief Technical Strategist FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.