An Eye on EUR/JPY
February 2, 2014 in Chart Alert
EUR/JPY continued it’s strong fall and that has brought the bearish outlook in the picture. However, the current price action is testing a very critical support zone. As we had mentioned at “Will EURJPY Test The 16 Months Old Support Pattern Again?” , the pair has been maintaining a support pattern of finding a support near the 22-week EMA for past 16 months. The current price -action is testing that level.
EUR/JPY and 22-week EMA
The current 22-week EMA is 137.43 and the recent low has been 137.50.
On one side we have the price near a critical support but what else is different for the recent fall? Well, since the uptrend started from the low of 94.12 of July 2012, this is the first time that the pair has seen a decline for 5 weeks continuously.
5-weeks of continuous fall
While the continuous fall for 5 weeks catches the eye but it is still less than the 886 pips of fall which had taken place in 4 weeks during May and June of 2013. The past 5 weeks have seen a fall of 819 pips.
What could be the next support level?
If the above mentioned support fails then the bearish sentiments will get a good confirmation. However the next support may come at 200-day moving average which is currently at 135.45.
You may also like to check the detailed and periodic updates of EUR/JPY outlook. Do share your opinions in the comment box below.