EURJPY—found support

EURJPY seems to have found support at the bottom of the upward sloping channel (or bear flag on the daily chart). Its low overnight was 123.24, a few pips above the next support level. My short from 125.03 profit stopped out at 124.15 for + 88 pips. I have not re-entered long—I'll wait for a pullback and see if this rally will have any legs. The other issue is that 124.15/20 is a confluence level of fib calculations so I want to see what it does here.

Resistance is at 125.20, 125.31, 125.88, 126.39 and 126.90, and 127.02. 127.02 (50% of move down from 134.38 to 119.66). Support is at 1.2401, 123.24, 122.34, 121.37 and 120.30.

Here's the three-hour chart. Forgetting about the upward channel for the moment, you can also see the range over the last several weeks from 119.66 to 125.25:












© Dianne Fecteau, 2010. No part of this material may be reproduced in any form, or referred to in any other publication, without the express written permission of the author.

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