Technical Analysis – EURJPY, 4-hourly: Euro struggling after New Year’s Eve high
January 17, 2014 10:01 am
(click to enlarge)
Having peaked on December 31st just above the 145 level, the highest level since October 2008, the euro has dropped against the yen in the New Year. It made a more than 1-month low of 140.47 on 13th of January but has since bounced higher to 141.91. The 140.50 level should provide some short-term support for the pair if it continues to decline.
Even lower, the pair could find some support around the 138.40 level, which is the low made at the beginning of December.
On the upside, the effective high of 2014 is around 143.15 and then of course the 5-year high at 145.15.
For the past 10 days or so the pair has traded without any clear trend. Current price action is near, but slightly lower, than the 50-period simple – SMA (50) – and 21-period exponential – EMA (21) – moving averages.
The MACD indicator has been in a mini-uptrend until yesterday, but during the latest periods, the indicator has slipped below its red signal line, which is bearish and it is near zero (which is neutral).
Overall, given the very strong bullish action in Euro / Yen during November and December of 2013, it is normal for some sort of correction and consolidation to occur. If key technical levels hold – such as the ones mentioned above as support points – the pair will most likely resume its uptrend at some later point.
(click to enlarge)
Having peaked on December 31st just above the 145 level, the highest level since October 2008, the euro has dropped against the yen in the New Year. It made a more than 1-month low of 140.47 on 13th of January but has since bounced higher to 141.91. The 140.50 level should provide some short-term support for the pair if it continues to decline.
Even lower, the pair could find some support around the 138.40 level, which is the low made at the beginning of December.
On the upside, the effective high of 2014 is around 143.15 and then of course the 5-year high at 145.15.
For the past 10 days or so the pair has traded without any clear trend. Current price action is near, but slightly lower, than the 50-period simple – SMA (50) – and 21-period exponential – EMA (21) – moving averages.
The MACD indicator has been in a mini-uptrend until yesterday, but during the latest periods, the indicator has slipped below its red signal line, which is bearish and it is near zero (which is neutral).
Overall, given the very strong bullish action in Euro / Yen during November and December of 2013, it is normal for some sort of correction and consolidation to occur. If key technical levels hold – such as the ones mentioned above as support points – the pair will most likely resume its uptrend at some later point.
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