Monday, August 22, 2011

EUR/JPY Consolidating in Channel - August 22, 2011

The euro-yen has been consolidating over the past few days. It has the potential to rise within a wider channel to the upper line in the 112s but there is a worrying lack of impetus in the move and it may not reach there.

An initial upside objective could be the target on the 0.05x3 point and figure chart and the line of resistance at 111.85. The lack of momentum in the rally could, however, presage a downfall, and if so then the previous lows at 108.00 would be targeted.

Analysis prepared by:
Joaquin Monfort
Forex4you analyst