EUR/JPY Should Develop Sideways Before Losses Resume
Ian Copsey | Mar 18, 2016 01:08AM ET
EUR/JPY INTRADAY CHART:
BIAS: Initial development should be sideways before losses resume
Resistance: 125.76-80 126.13-43 126.61 126.90
Support: 125.50-54 125.09 124.73 124.51
MAIN ANALYSIS: That was a difficult day with both USD/JPY and EUR/USD generally moving in rough tandem. It appears this is developing in a triangle and as such, what it implies is that we shall see a long period of sideways trading between 122.06 and 127.28. What we need now is to try and identify the larger complex correction. For now we should see the final leg of a triangle back to the 126.13-43 area for losses to resume. We shall have to see which (or both) of JPY or EUR that drives that process. Once below 125.09 we should see further slippage lower...
COUNTER ANALYSIS: Only an earlier break above 126.61 would pressure the 127.30 high. If this breaks it would annoy. I'd prefer to remain neutral at that point to assess the individual pairs. A break below 125.54-66 would assist lower and back to 125.09-20 at least…
MEDIUM TERM ANALYSIS:
18th March: It looks like we're going to see a complex correction in the Wave [iv]. Which of a flat, expanded flat or triangle it will be needs more development....
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