EUR/JPY Daily Chart 2:30PM EDT 6/19/2012
EUR/JPY has been in a correction in June, against a decline that started in March, consolidated in April, and accelerated through end of April and May. The daily chart shows June's consolidation/correction now testing a declining trendline.
As we look closer at the 4H chart, we see that the market has been in a sideways consolidation since establishing resistance in the 100.65-100.80 area. Support has been slightly tilted up, like an ascending triangle. This suggests a slight bullish bias in the short-term.
The RSI also has stayed above 40 after tagging 70, so the short-term momentum in June still has a bullish bias.
Now, if we break above the 100.80 level, and push the RSI back above 60, we are likely to be in a bullish breakout.
Above 100.80, the market open up the next pivot near the 102.00 area, with a more aggressive extension looking at the 200-day moving average near 103.90.
If the market holds below 100.80, and falls back below 98.50, we are likely breaking the consolidation to the downside, which maintains bearish outlook, with possible intent to test the 95.56 low.
EUR/JPY 4HChart 2:36PM EDT 6/19/2012
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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