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14 Mar 2013
Forex: EUR/JPY puts pressure on 123.80/124.15 proven demand
After being faced with strong area of monthly supply - see April 2010 - at 125.00/128.00, the EUR/JPY is finding it hard to hold ground above that area, with this week's double failure above it bringing into play the area of demand 124.15-123.80, where a first test was timidly rejected on Wednesday, only to be re-threatened again now.
According to Valeria Bednarik, chief analyst at FXstreet.com: "The risk to the downside increases for EYR/JPY. The hourly chart shows price below 100 SMA currently around 125.00 acting as short term resistance, while indicators hold in negative territory. In the 4 hours chart technical readings broke below their midlines although lacking momentum at the time being."
Once below the area of demand mentioned above, Valeria anticipates "the bearish momentum will likely accelerate" she says.
According to Valeria Bednarik, chief analyst at FXstreet.com: "The risk to the downside increases for EYR/JPY. The hourly chart shows price below 100 SMA currently around 125.00 acting as short term resistance, while indicators hold in negative territory. In the 4 hours chart technical readings broke below their midlines although lacking momentum at the time being."
Once below the area of demand mentioned above, Valeria anticipates "the bearish momentum will likely accelerate" she says.