EUR/JPY 4H Chart 10/3/2012 9:00 AM EDT
Still bullish: The EUR/JPY was able to hold above 99.60, and keep the pair above a rising trendline that goes back to the 94.10 July-low. As you can see in teh 4H chart, price action appears to have established a bottom since the corrective decline from 103.86. The RSI is pushing above 60, showing lost of the bearish momentum in the noted downswing.
The daily chart shows the EUR/JPY riding the rising trendline for a few days now. The RSI is pushing back above 60 after holding above 50, a sign that the bullish momentum is still persistent in the daily time-frame.
Resistance: The bullish outlook remains in the daily time-frame, but we see that the upside is limited to the 103.80-1.04 level for now. This is the area containing the previous high. By the time, price gets there, it will test or approach a declining trendline that goes back to April 2011.
Throwback: Failure for the market to hold above 100.00 upon a throwback should invalidate the bullish outlook, and a break below 99.60 should introduce a bearish one, opening 99.13 and 97.81 pivots.
EUR/JPY Day Chart 9/28/2012 11:02AM EDT
GBP/JPY Daily Chart 10/3/2012 9:20AM EDT
The GBP/JPY is also seen in the daily chart “riding” a rising trendline from July. Its rally started earlier in June from the 118.82 low. Bullish momentum took just as long to establish in the daily chart, and with the RSI above 50, is still maintained. The upside in GBP/JPY has a little more room until it hits the next pivot area near the 130.00 psychological handle, maybe up to the 130.35 78.6% retracement. This area also contains a major declining trendline going back to April 2010.
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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