Chart Alert: EUR/JPY Breaks The First Trend
February 10, 2013 in Chart Alert
EUR/JPY has broke the trend of past 2 months during which every week has seen upward gains. For past 8 weeks every weekly candle of EUR/JPY has been green and that trend was broken last week with a large red candle.
Another trend which has been in place for past 11 weeks is support near the 5-week EMA as shown in the weekly chart on the left hand side. The green line is representing 5-day EMA. The current 5-week EMA is at 121.95. Support can be expected near this level but the fall of last week suggests that we can see a break of this support pattern. If this support fails then 120.00 range should bring psychological support but a failure of that may take EUR/JPY for a dive towards 38.2% retracement.
Please also check the regularly updated EUR/JPY outlook.