EUR/JPY: Rally Reached Top Of The Target Range
Ian Copsey | Sep 22, 2014 12:23AM ET
INTRADAY CHART
BIAS: We should see the rest of the correction to 138.70-90 (max 138.50) before extending gains
Resistance: 140.11 140.35-40 140.70-75 141.22
Support: 139.67 139.10-15 138.70-90 138.50
MAIN ANALYSIS: The rally reached the top of the target range between 140.85-141.28 from where we have seen the expected correction lower. So far we have seen the 139.67 level reached. We should see the 140.35-40 area cap for losses below 139.67 to extend to 139.10-15 and then 138.70-90. (allow for 138.50.) Watch for bullish reversal indications from there. However, from this point onwards we may just see a longer period of consolidation. Therefore focus more on the extremes and note the analysis in both EUR/USD and USD/JPY...
COUNTER ANALYSIS: Only an earlier break below 138.50 would risk more direct losses to 138.00-25 initially and then below 137.70
Back above 140.50 could see a more complicated consolidation. Take care at 140.70-75 but possibly we could see the 141.22 high again. Only above would risk extension to 141.64.
MEDIUM TERM ANALYSIS:
22nd September: The correction we're seeing versus the related earlier correction tends to implicate a period of range trading. At this point, the 138.50-90 area should support while the 141.22 area could hold - though there is a slight chance of a minor new high and recycling. Thus, this period does suggest some choppy trading for a period before any further solid gains can be seen.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.