Technical Analysis

EUR/JPY Hovers Below A Major Resistance

Typography

EUR/JPY has managed to increase as much as 132.00 in the morning, but failed to stay near the today's high and now is trading in the red again. Price reached a very strong dynamic resistance, so the current drop is understandable. A minor decrease will appear if the Nikkei stock index will drop in the upcoming days.

The Yen has increased versus all its rivals as the JP225 has found temporary resistance and now is going down, but this could be only a temporary decrease. JP225 decrease is natural after the impressive rally and after the breakout above the 19700 horizontal resistance. Nikkei could come down to retest the broken levels before will resume the upside movement.

The Nikkei's next upside target will be at the 20058 static resistance, a further increase will punish the Yen, which should drop versus all its rivals.

Price has retested the outside sliding line (SL), but failed to reach the median line (ml) of the black ascending pitchfork. Only a valid breakout above the mentioned levels will confirm a further increase. Is trapped within the inside sliding line and the outside sliding line, so we'll have a fresh trading signal once the rate will escape from this chart pattern.

The current rebound was expected after the failure to retest the inside sliding line (SL) and the upper median line (uml) if the minor descending pitchfork. Technically, it could climb much higher because the Nikkei stock index is expected to resume the rebound.

Author: MultiBank Exchange Group Website: http://www.mexgroup.com
MultiBank Exchange Group
Multibank Exchange Group (MEX Group) is a multinational financial derivatives dealer. Established in California in 2005, MEX has offices in several countries around the world, including the US, the UK, Australia and China. Mex Group is regulated by the Australian Securities and Investment Commission (ASIC) in Australia, the Ras al Khaimah Free Trade Zone (RAK) in the United Arab Emirates and the Financial Services Commission (FSC) in the British Virgin Islands.
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