Forex Technical Update

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EUR/JPY

EUR/JPY

The EUR/JPY rallied from 104.43 to 107.03 in an abc wave fashion seen in the 4H chart. Relative to the latest down swing, this was a 78.6% retracement. The 4H chart also shows that the RSI is held below 60 and attacking 40. A return below 40 reflects bearish continuation momentum. Price action made a lower high, but the RSI reading made a higher high. This is known as a negative reversal signal and suggests we have another leg in this bear run.

A conventional swing projection targets the 105.00 area.

EUR/JPY

The daily chart shows lower support levels, with 50% retracement of the 97.03-111.42 rally at 104.22. Then a more important support cluster resides around 102.50, with 61.8% retracement and a previous pivot area here.

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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.

Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.