by Himanshu Jain
eur/jpy forecast - daily chart
EUR/JPY moved as we had mentioned during the last weekend and quoted above. The currency pair went up to 102.22 and found resistance exactly at the upper edge of the daily Ichimoku cloud. The downward move from this resistance found support exactly at the Tenkan-sen support level.
Well, for the next week we will first be watching for a break of either the above mentioned support or resistance i.e. resistance of 102.22/102.30 and support at 100.58/100.50.
On the upside even a break of the resistance of 102.22 should bring some stronger resistance near 102.52, which was the peak of the resistance zone during December 14th to December 27th, 2011. If EURJPY breaks over this resistance then we would expect further slow move towards the psychological resistance of 104.80/105.20.
On the downside, even a break below 100.58/100.50 should bring a support near the psychological level of 100.00 and below that we would expect support at the Kijun-sen level of daily Ichimoku cloud i.e. near 99.60/99.65. Any firm break below this will indicate that the recent correction is over and we can change our focus back towards a retest of 97.03. As we have been mentioning for past couple of weeks that below 97.00 the strong psychological support of 95.00 would start working and any subsequent downward move should be slow and with frequent supports near 96.60 and above 96.20 and 95.60. But in case the market sentiments do not have sudden change because of some major economic news from the Euro zone, subsequently we expect a move towards 94.10/94.05 (inverse 61.8% projection of the upward correction between October 3rd to 30th and also the psychological aspects of the price action).
You may also check daily technical eur/jpy analysis, weekend eurjpy forecast and changing currency correlation at ForexAbode.com
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