25 Jun 2013
EUR/JPY structurally bearish, above 128.40 sees relief
FXstreet.com (Barcelona) - EUR/JPY continues to be capped by the 20 hourly MA around 128.25, a cap that has been unable to overcome by holding above it since its first attempt late in the US session.
Lower lows and lower highs since June 20
The EUR/JPY trading is developing within a descending channel since the topside failure at 130.00 barrier last June 20. In the short term, barring the take out of 129.20 swing high, the bearish pressure is still a credible outcome. From a broader perspective though, the rate is confined in no man's land, exemplifying lack of determination on next Yen value.
Valeria Bednarik, Chief Analyst at FXstreet.com, reiterated the bearish transition pointed above, saying "the daily chart shows a lower low and a lower high, which favors the downside." As for the short term, Bednarik doubts buying interest will be sustained at current levels. If the pair can make it above 128.40, only then it will allow further advances to 129.30, Bednarik noted.
Lower lows and lower highs since June 20
The EUR/JPY trading is developing within a descending channel since the topside failure at 130.00 barrier last June 20. In the short term, barring the take out of 129.20 swing high, the bearish pressure is still a credible outcome. From a broader perspective though, the rate is confined in no man's land, exemplifying lack of determination on next Yen value.
Valeria Bednarik, Chief Analyst at FXstreet.com, reiterated the bearish transition pointed above, saying "the daily chart shows a lower low and a lower high, which favors the downside." As for the short term, Bednarik doubts buying interest will be sustained at current levels. If the pair can make it above 128.40, only then it will allow further advances to 129.30, Bednarik noted.