Forex Technical Update
EUR/JPY Daily Chart 11:33AM EDT 6/6/2012
We were looking at the EUR/JPY earlier this week, as it swung back from below the 2012 low set in January. The daily chart shows that the market has established a support pivot that reached down to 95.55, and is now testing the 99.00 handle.
The next level to watch out for is the 100 psychological pivot, which is allied with the 100-day simple moving average as well as a price pivot near 100.25.
Therefore, the current recovery still has some upside risk, but in the 100-100.25 area, we should monitor price action for possible reselling, since we are still in a strong bear market since March.
Above 100.25, the next key resistance is in the 101.90-102.10 area. A declining trendline resides there along with price pivots seen respected in Feb as support, Jan. as resistance and Dec. also as resistance.
Fan Yang CMT is a trader, educator and a Chief Technical Strategist for FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
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