EURJPY’s Upward Gains With Unanswered Questions – Forex Chart Alert

August 4, 2013 in Chart Alert

Last weekend we had mentioned that EUR/JPY is in a strong support zone and any further decline will depend on the decisive break below 130.00 psychological level.

The break below 130.00 took place and then a strong upward jump was witnessed but that still leaves us with some unanswered questions.

The break below 130.00 was not really decisive. The interesting point here was that whenever that break took place, the daily closing was at or slightly above 130.00.

EUR/JPY and 130.00’s psychological support

EURJPY and psychological 130 level

 

The above chart indicates the fact that even with a break below 130.00, the psychological aspects of 130.00 supports were well in place.

However, on the other hand the price action candle of Friday indicates that the market is not really convinced about the upward moves. The wide gap between the high of the day and the closing price reflect those mixed sentiments.

Do leave your comments in the comment box below to share your opinions and to discuss the price action further.

You may also like to check EUR/JPY’s weekly predictions and the daily analysis of EUR/JPY.

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