Wednesday, October 5, 2011

EUR/JPY Correction Unfolding

The euroyen has risen in a counter-trend rally from the lows reached on Monday. The first leg of the bounce was strong but recent activity has been sideways. 

Whilst it is possible the pair could continue to rally higher with the first target situated at resistance at 103.10 and then the underside of the channel at 103.90, the stronger bearish trend could also resume and pull the exchange rate back down to support from the S1 daily pivot at 101.25 and then to retouch the 100 lows.

Analysis prepared by:
Joaquin Monfort
Forex4you analyst