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19 May 2015
EUR/JPY likely to test 133 – FXStreet
FXStreet (Barcelona) - FXStreet Editor and Analyst, Dhwani Mehta, sees additional losses possible for EUR/JPY if the pair breaks below 133.95.
Key Quotes
“Technically, on the daily chart, EUR/JPY trades in a rising wedge formation and has dropped sharply from four month highs at 136.96 reached on Monday. The cross breached the 5-DMA and 10-DMA supports and is likely to retest 134 handle.”
“The daily RSI at 54 aims lower suggesting more room for declines. Hence a break below daily lows at 133.95, EUR bears are expected to dominate, dragging the pair to the trend line support located at 133 levels.”
“A sharp sell-off could trigger below a break of the last which may knock-off EUR/JPY to 100-DMA located at 132.03.”
“However, a failure to breach 133 levels, the pair may rebound higher for a retest of 134 handle and beyond.”
Key Quotes
“Technically, on the daily chart, EUR/JPY trades in a rising wedge formation and has dropped sharply from four month highs at 136.96 reached on Monday. The cross breached the 5-DMA and 10-DMA supports and is likely to retest 134 handle.”
“The daily RSI at 54 aims lower suggesting more room for declines. Hence a break below daily lows at 133.95, EUR bears are expected to dominate, dragging the pair to the trend line support located at 133 levels.”
“A sharp sell-off could trigger below a break of the last which may knock-off EUR/JPY to 100-DMA located at 132.03.”
“However, a failure to breach 133 levels, the pair may rebound higher for a retest of 134 handle and beyond.”