Forex Technical Update
EUR/JPY 1H Chart 8/24/2012 1:15AM EDT
The EUR/JPY is maintaining a bullish stance. The 1H chart shows a market holding above a rising trendline, which is also the support of a rising channel. A 1H candle closing above 98.85 would clear an intra-session resistance at 98.82, exposing the 99.18 high again, with the wind of a bullish trend throughout most of August on its back.
On the other hand, holding below 98.85 and pushing below 98.30 is likely going to expose the 98 handle and a pivot area around 97.80. This would also break below the rising channel, exposing a larger rising channel seen in the 4H chart.
This larger channel extending back to the 94.10 low from July 24, could be tested if the market falls to around the 97 handle. Until we break below this channel, the medium term outlook remains bullish, especially if the 4H RSI also holds above 40.
The current bullish outlook above 99.18 targets the 100 psychological handle, as well as the June highs and resistancepivots in the 101.35-101.60 area.
EUR/JPY 4H Chart 8/24/2012 1:22AM EDT
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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