Dukascopy Bank Team
Dukascopy Bank SA
EUR/JPY 1H Chart: Channel Down
Comment: EUR/JPY has been in a strong down-trend since last year’s December, and the pair is already trading at the levels seen in 2013. The recent rally did not turn into a reversal, failing at 131.30. Now the outlook is once again negative, as confirmed by the technical indicators. The upside is limited by resistance at 130.00 (weekly PP, down-trend, and 200-hour SMA). The immediate support is at 129.00, but supply of Euros should eventually push the price towards the Mar 13 low at 127.00, violation of which in turn will confirm the pair’s long-term bearish intentions. Nevertheless, there are still more long positions open in the market than there are short ones, 55 and 45%, respectively.
USD/ZAR 1H Chart: Channel Up
Comment: While considering only the recent several days USD/ZAR might seem a good buy, on a larger scale the pair has just made a contact with the upper trend-line of the long-term bearish channel. Accordingly, it is more likely that there is going to be a sell-off, through the up-trend at 12.0267 and through a cluster of supports at 12.00, potentially down to the lower boundary of the pattern at 11.60. However, the if the Dollar manages to gain a solid foothold above the major resistance trend-line, the outlook will be changed. In this case the rate will have a good chance to extend the gains up to 12.35. Meanwhile, the technicals are pointing north, and the sentiment is neutral (47/53).
This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.
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