Technical Analysis for Crosses

EUR/JPY

Our target yesterday at the 23.6% Fibonacci level for the long term ascending channel that started in June 2001 and ended in July 2008 at 153.32 was reached but the EUR/JPY pair failed to maintain the momentum as it declined to close below the 100% correction for the medium term upside wave that lasted from 20-3-2008 till 23-7-2008. As we see the pair is currently retesting the mentioned level where a confirmation for the breach will open the way to downside targets around the 150.30s represented by the 200 day moving average on the weekly charts that was able to limit further decline. Momentum indicators show the pair slightly oversold as the ADX indicator is starting to show signs of adjustments to the upside

Support: 151.62, 151.30, 150.79, 150.40, 150.13
Resistance: 152.17, 152.47, 152.76, 153.06, 153.33

GBP/JPY

Nothing has changed since yesterday as trading is limited between the minor support at 190.01 and the 61.8% Fibonacci correction at 187.78 for the upside wave that started on 10-9-2000 and ended on 8-7-2007 that once again was a hard obstacle for the pair to overcome. As we see on the Relative strength indicator, the pair is oversold with direction indicators supporting the upside movement yet momentum seems to be decreasing indicating that trading today could be of low volumes which could fail to provide the pair with the momentum needed to recover some of the losses to the upside. 187.78 offers a good demand point

Support: 188.62, 188.11, 187.78, 187.29, 186.87
Resistance: 189.60, 190.01, 190.67, 191.25, 191.63

EUR/GBP

The EUR/GBP pair confirmed the close below the 38.2% Fibonacci correction for the medium term upside channel and remains traded within the ranges between the previously mentioned level at 0.8036 and the minor support above the 50% correction at 0.8004. The pair is heavily oversold on the daily charts but it seems like it is ignoring it as it still undergoes a sideways correction supported by direction indicators. A good demand point for the pair at 0.8016

Support: 0.8016, 0.8004, 0.7989, 0.7978, 0.7962
Resistance: 0.8036, 0.8052, 0.8066, 0.8086, 0.8095

Crown Forex

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