Technical Analysis – EURJPY uptrend line holds firm
November 6, 2013 8:51 am
EURJPY has been in an uptrend since the June 13 low of 124.94 to the October 22 high of 135.50. It retested this level on October 30 before reversing to the downside and is currently finding support at the uptrend line. Yesterday’s level of 132.35 is a key support level since it is at the trendline as well. Any break below this level exposes the next support level at 131.09, which is the October 8 low.
Currently the Stochastic indicator is below 20 and indicates the EURJPY pair is oversold. On a technical level, this could give the pair a chance to rebound and rally towards the 134.00 psychological level. Above this, the pair could revisit the key resistance level at 135.50.
On a fundamental level, the yen is usually weaker when risky assets do well, although it has also been negatively affected by the Bank of Japan’s quantitative easing campaign.
EURJPY has been in an uptrend since the June 13 low of 124.94 to the October 22 high of 135.50. It retested this level on October 30 before reversing to the downside and is currently finding support at the uptrend line. Yesterday’s level of 132.35 is a key support level since it is at the trendline as well. Any break below this level exposes the next support level at 131.09, which is the October 8 low.
Currently the Stochastic indicator is below 20 and indicates the EURJPY pair is oversold. On a technical level, this could give the pair a chance to rebound and rally towards the 134.00 psychological level. Above this, the pair could revisit the key resistance level at 135.50.
On a fundamental level, the yen is usually weaker when risky assets do well, although it has also been negatively affected by the Bank of Japan’s quantitative easing campaign.
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