EURJPY Analysis Update
- EURJPY has found support near the 38.2% Fibonacci retrace of 97.01 – 111.42. This comes after price has dropped from the 110 area range highs following the high momentum move up from 97.00.
- The recent lows have given support before when price hit 105.62 on the 6/3/2012. The daily candle currently resembles a hammer/pinbar but there is still time for this to change before the day ends.
- If the EURJPY exchange rate can form a base around 106.00 a range could potentially be seen before a trend is established in either direction. The 108.70 area daily lows stand out as possible resistance for the EURJPY. This could see previous support become resistance.
- If euro/yen can break down through the 106 price structure the 105.00 psych round number level stands out as the next key area.
- The directional bias is to the upside but these corrections can last longer than many anticipate. Price action should be monitored for any early indication of a trend resumption or further decline to the downside.
- The Bank Of Japan Interest Rate Statement is tentatively scheduled for later tonight; any additional increase in the asset purchase program, or similar shock measure, could bring additional volatility.