Forex: EUR/JPY rebounds from fall at 113.90

Wed, Jul 28 2010, 10:48 GMT
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FXstreet.com (Barcelona) - The Hegemonic currency gave ground against the Japanese Yen mid-morning in Europe, pulling-back down below 114.00 from an 11-week peak at 114.69. However, the pair just regained 114.00 area, sitting at 114.10 now, a 0.11% lower than previous close.

“After breaking through the downtrend line resistance of a Falling Wedge pattern at 110.00 on the daily chart, the EUR/JPY has rallied to prior resistance between 113.30 and 113.40, well shy of area between 115.07 and 121.75” said the Autochartist team.

“The likely reason for the stall that came after the pattern reversal higher is the current market cycle, which still shows a strong eight-bar Initial Trend reading. This suggests there is still a strong downtrend on the daily chart, and it seems the low bullish momentum that accompanied the pattern break was simply not enough to immediately push the EUR/JPY pair higher”.

EUR/JPY

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