Dukascopy Bank Team
Dukascopy Bank SA
EUR/JPY 1H Chart: Channel Down
Comment: EUR/JPY has been falling since last year’s December, and the pair’s inability to rise above 131.30 during the latest consolidation phase only confirms its bearishness. The next target is therefore a combination of the daily S2 and weekly S1 near 126.00, though we are likely to see an upward correction only from 125.00, where the rate is expected to encounter the lower boundary of the channel and the daily S3. And even though the technical indicators on all relevant time-frames are mixed and the sentiment is neutral (54% of positions are long), the bears are unlikely to let go of the pair until the price falls down to 119 yen, where a major support level is implied by the 2013 Feb and Apr lows.
USD/SEK 1H Chart: Channel Up
Comment: Not only does USD/SEK look bullish on the daily chart, but the short-term outlook appears to be positive as well. The currency pair has just confirmed the lower trend-line of the channel, meaning the next objective is the resistance at 8.96, which is reinforced by the daily R3 and weekly R1 levels. However, there is a notable obstacle at 8.8855, which might postpone a recovery. Meanwhile, a close beneath 8.7842 will likely mean a sell-off to the weekly pivot point at 8.72, and additional support is seen at 8.69 (daily S3 and 200-hour SMA). As for the longer-term perspective, the US Dollar is currently moving towards the 2009 high at 9.33.
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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