Even with the drop to 106.64 yesterday, EURJPY is still within the broad trading range that began last July. Once it touched the low, it immediately pulled back to 110.84 and has since been lingering in a smaller trading range between there and 109.47.
The pair is maintaining the break above the long-term trend line. Momentum, as represented by RSI, looks good. Both of these are positive signs.
Support is at 109.47, 109.27 and 106.64 (big gap there). Given that it bounced so sharply off that low, it's not likely to go back there but it certainly is possible. Resistance is 110.84, 111.97, 112.50, and 113.73. Above that, the pair will probably retest the 116 resistance.
Here's the weekly chart:
© Dianne Fecteau, 2011. 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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