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EUR/JPY: Rockets Then Loses 50% Of Gain

Published 09/30/2014, 01:46 AM
Updated 07/09/2023, 06:31 AM

EUR/JPY Weekly Chart

EUR/JPY rocketed in the second 2 weeks of September but collapsed last week to lose 50% of the gain. We have stablised over the past 2 sessions but will only look more positive above immediate resistance at 139.05/15. Be ready to go with a break higher to target 139.42/45. Exit longs & try shorts here with stops above 1.3960. If we can reach as far as 1.3970/75 try shorts again with stops above 139.90.

Failure to hold above 138.70/65 keeps the market under pressure and targets the 2 week low at 138.40/35. Obviously this is key but a break lower looks increasingly likely for this week & would target good support at 138.15/10. Exit shorts & try longs BUT be prepared to add to longs down at 137.95/85 with a good chance of a bounce from here at this stage. This area could even mark the low for the 2 week correction.

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