EUR/JPY Candlesticks and Ichimoku Analysis
EUR/JPY – 131.05
|
Last Candlesticks pattern |
Time of formation |
Trend bias |
| Weekly |
Evening star |
June 2009 |
Sideways |
| Daily |
Shooting star |
14 Aug 2009 |
Up |
The single currency did hold above indicated key support at 126.95 and has rebounded from 127.32, retaining our consolidative view and mild upside bias remains for test of the Tenkan-Sen and Kijun-Sen (now at 132.69 and 132.80), them towards resistance at 134.54. Looking ahead, it is necessary to see a rise above this level to signal the retreat from 138.49 has ended and extend gain to next resistance at 136.00 and possibly towards 137.00.
On the downside, whilst pullback to 130.00 cannot be ruled out, reckon 129.00 would contain weakness and bring such a rebound to aforesaid upside targets. Only a breach of 137.32 would risk another test of 126.95 support and break there would shift risk back to the downside for at least a strong correction of the rise from 112.08 to 125.67 (50% Fibonacci retracement of 112.08 to 139.26) and later next chart support at 124.39.
On the daily chart, despite last week's brief fall to 127.32, the single currency staged a strong rebound from there, retaining our view of further consolidation and choppy trading within indicated range of 126.95-139.26 would continue. As price already penetrated the Kijun-Sen, mild upside bias remains for a test of resistance at 131.60-78 (previous resistance and 61.8% Fibonacci retracement of 134.54 to 127.32) and break there would signal the retreat from 134.54 is over, then stronger bounce to 133.00 would follow.
On the downside, whilst pullback to the Kijun-Sen (now at 130.72) is likely, the Tenkan-Sen (now at 129.52) would hold and bring further rise to abovementioned upside targets. Only a daily close below the Tenkan-Sen would risk stronger retreat to 128.50 but support at 127.32 should contain weakness and support at 126.95 should remain intact, bring another strong rebound next week or early January 2010.
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