EURJPY is another pair that has closed above a long-term trend line. The low is more recent than the Guppy's was (Aug. 2010 versus Jan. 2009 for the Guppy). However, until the pair breaks below the 105.43 low, it's possible this swing low was one to build a base upon.
This pair may be being pulled by the Euro's move up as there's an 80% correlation on a daily basis currently. As I blogged earlier this week, there's fierce resistance in the 112 zone, all the way up to 112.92. In additon, 115.69 is the top of a general range that goes back to September 2009. 116.48 is the .382 retracement of the move down from 170.01. Above that are highs in the 128 and 138/139 area.
If the pair begins to break down, support is at 111.83, 111.25, 110.32, and 109.59/52 (price low and fib). Below that would hint at 106.83 and of course below 105.43 would resume the larger downtrend.
Here's the weekly chart:
© 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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