Will EURJPY test the 16 months old support pattern again?
January 26, 2014 in Chart Alert
The break of 140.00 when EUR/JPY touched 139.75 during last week indicates that the pair may extend it’s decline. However the weekly closing slightly above 140.00 suggests that the support may still work. There is another support in the picture and that is the lower edge of the daily Ichimoku cloud.
Price action near the lower edge of the cloud
Further consolidations can not be ruled out. However that does not change the overall outlook which remains bullish. EUR/JPY has been following a support pattern for past 16 months and till that holds, further recoveries will still be expected.
EUR/JPY’s support pattern
As clear from the above chart, the pair has been finding support near 22-week EMA since September 2012 i.e. past 16 months. The current 22-week EMA is at 137.42.
More or less the same facts about the current support of Ichimoku cloud and 16 months old support pattern near 22-week EMA also hold true for GBP/JPY and lets have a look on those charts as well.
GBP/JPY and daily Ichimoku cloud
Support near 22-week EMA
You may also like to check the weekly updates of EUR/JPY outlook.