4 Jul 2013
Flash: EUR/JPY – reverses ahead of cloud resistance at 131.16
FXstreet.com (London) - Senior Analysts, Axel Rudolph and Karen Jone at Commerzbank, said the EUR/JPY has reversed.
It has done so just ahead of the 131.12/30 resistance band (April high, the June 11 high and the top of the daily cloud) as expected and has reacted back towards the 20-day ma at 128.48. They said as long as 131.30 caps, there is a risk of a slide back to the base of the cloud at 126.47 then 125.00/124.45 band of support (mid-April low and the 23.6% retracement of the entire move up from the July 2012 low). They sigh this as a key band of support and 124.45 is considered the break down point to 118.82/65, the February and April lows and the 38.2% retracement of the same move. “Above 131.30 will abort the foregoing and suggest a retest of the 133.82 May high.”
It has done so just ahead of the 131.12/30 resistance band (April high, the June 11 high and the top of the daily cloud) as expected and has reacted back towards the 20-day ma at 128.48. They said as long as 131.30 caps, there is a risk of a slide back to the base of the cloud at 126.47 then 125.00/124.45 band of support (mid-April low and the 23.6% retracement of the entire move up from the July 2012 low). They sigh this as a key band of support and 124.45 is considered the break down point to 118.82/65, the February and April lows and the 38.2% retracement of the same move. “Above 131.30 will abort the foregoing and suggest a retest of the 133.82 May high.”