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23 May 2014
EUR/JPY in consolidation between 138.50-139.00
FXStreet (Bali) - Having failed to attract follow through on May 21 breakout below 138.50/55 support, EUR/JPY is presently in a consolidation pattern, with offers at 139.00 still capping the upside.
Despite weakness in the EUR/USD, the recovery in US yields has allowed JPY crosses to recover from recent selling pressure earlier on the week, thus resulting on a directionless price action by EUR/JPY in the last 24 hours of trading.
Technically, Valeria Bednarik, Chief Analyst at FXStreet, notes: "The hourly chart is showing price in a tight range right above 100 SMA, and some divergences between indicators: momentum heads lower below its midline, while CCI points for some upward continuation, while in the 4 hours chart a slightly positive tone prevails but further technical confirmation is required, probably with a clear break above the 139.40 level, immediate resistance." If this latter level is broken, Valeria suspects 140.00 may be next target.
Despite weakness in the EUR/USD, the recovery in US yields has allowed JPY crosses to recover from recent selling pressure earlier on the week, thus resulting on a directionless price action by EUR/JPY in the last 24 hours of trading.
Technically, Valeria Bednarik, Chief Analyst at FXStreet, notes: "The hourly chart is showing price in a tight range right above 100 SMA, and some divergences between indicators: momentum heads lower below its midline, while CCI points for some upward continuation, while in the 4 hours chart a slightly positive tone prevails but further technical confirmation is required, probably with a clear break above the 139.40 level, immediate resistance." If this latter level is broken, Valeria suspects 140.00 may be next target.