EUR/JPY: Rebound From 134.13 Extended Higher And Could Continue
ActionForex | Oct 29, 2014 03:39AM ET
Daily Pivots: (S1) 173.34; (P) 173.80; (R1) 174.24;
The recovery from 168.01 extended higher and could continue. But again, near term outlook stays cautiously bearish as long as 175.00 resistance holds and we'd expect further fall ahead. Prior break of 169.34 support was taken as an indication of medium term topping at 180.70. Below 171.06 minor support will turn bias back to the downside for 168.01 first. Break will target 163.87 support next. Nonetheless, break of 175.00 will dampen this bearish view and target a test on 180.70 high instead.
In the bigger picture, the break of 169.34 support indicates that the up trend from 116.83 low has made a medium term top at 180.70 already, on bearish divergence condition in daily and weekly MACD. Deeper correction should be seen to 38.2% retracement of 116.83 to 180.70 at 156.30 first. While we'd expect this up trend to resume later, there should be a lengthy medium term consolidation first.
Daily Pivots: (S1) 137.12; (P) 137.46; (R1) 138.04;
The rebound from 134.13 extended higher and could continue. But again, as long as 137.93 resistance holds, deeper decline is still expected. Prior break of 135.50 support was taken as an indication of medium term trend reversal. Below 135.20 minor support will turn bias to the downside for 134.13 first. Break will extend the larger fall to 131.21 support next. However, break of 137.93 will dampen this bearish view and turn bias back to the upside for 141.21 resistance.
In the bigger picture, sustained break of 135.50 key support level will indicate that up trend from 94.11 long term bottom has made a medium term top. In the case, deeper correction should be seen to 38.2% retracement of 94.11 to 145.68 at 125.98. On the upside, above 141.21 resistance will extend the up trend to 76.4% retracement of 169.96 to 94.11 at 152.59 instead.
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.