EUR/JPY re-tests channel line

Source: Dukascopy Bank SA

Positions Today Yesterday % Change
Longs 44% 44% 0.00%
Shorts 56% 56% 0.00%
Indicator 4H 1D 1W
MACD (12; 26; 9) Sell Buy Buy
RSI (14) Buy Neutral Neutral
Stochastic (5; 3; 3) Neutral Sell Sell
Alligator (13; 8; 5) Sell Buy Buy
SAR (0.02; 0.2) Sell Sell Buy
Aggregate

After testing the upper channel boundary mid-Friday, EUR/JPY returned near the 20-hour SMA and followed the given line up to the 124.40 mark. The rate formed a slight motion sideways, demonstrating that the upside momentum apparent in previous trading sessions is starting to lose ground. Thus, bears may take the upper hand and push the Euro lower. The closest barrier from below is formed by the monthly PP and the lower Bollinger band near the 123.90 mark. It is likely that downside risks continue to pressure the rate, thus pushing it even further down to the 55-hour SMA and the weekly PP at 123.80 and 123.67, respectively. In a less likely scenario, the rate may penetrate the 124.40 level and surge against the Yen. The weekly R1 at 124.34, however, is not expected to be reached.

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