EURJPY failed to form a base in the low 108 area and dropped further to a low of 106.95 on Friday, near a somewhat obscure fibo and of course a round number (which the yen pairs seem to favor). In trying to base here, it has reached a spike high of 107.68 overnight. However it has since fallen back and we're going to have to see what happens during the NorAm session.
A support zone exists down to 106.24 (price lows, polarity, fib confluence). Below that opens up the possibility of a move down to 103.81. There's a cluster of resistance between 108.00 and 109.00 (price, fibo, confluence). Above that is last week's high of of 110.24.
See last week's blog posts for charts.
© 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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