Technical Analysis for Crosses

EUR/JPY

The EUR/JPY pair was able to breach the 38.2% correction at 155.60 for the medium term downside channel that started on 28-7-2008 and ended on 18-9-2008, where all we need now is a confirmation of the breach to take the pair now higher after initiating a new short term ascending channel in upside correction movements targeting 158.31 at the 50% correction. The 21 day moving average on the daily charts was able to limit further losses yesterday providing the pair with bullish momentum. We expect high volatility in the markets as we see contradiction in momentum indicators showing the pair being heavily overbought on the daily charts but starting to adjust on the four hour chart. A good demand point for the pair would be at 155.60.

Support: 155.60, 155.42, 155.22, 154.76, 154.41
Resistance: 155.94, 156.16, 156.51, 156.92, 157.21

GBP/JPY

Little has changed since yesterday's trading session as the pair is still consolidating within very narrow levels between the 194.84 support and the 196.76 resistance levels. The general trend for today could remain sideways as seen on momentum and direction indicators yet with slight tendency to the downside as the pair has entered an overbought area on the daily charts.

Support: 194.84, 194.44, 194.12, 193.72, 193.48
Resistance: 195.69, 195.94, 196.36, 196.76, 197.48

EUR/GBP

The Euro versus the Pound was able to breach the 61.8% correction at 0.7945 starting a new vigorous upside wave supported by the ADX indicator yet as we see on momentum indicators, the pair is in need of a downside correction perhaps taking it back to the mentioned level before gathering bullish momentum to target and breach the next correction level at 0.7990. A good demand point for the pair is at 0.7945

Support: 0.7960, 0.7945, 0.7926, 0.7916, 0.7904
Resistance: 0.7990, 0.8004, 0.8020, 0.8036, 0.8049

Crown Forex

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