Analysts at Natixis provide a brief technical outlook for trading the EUR/JPY cross in the short to medium-term.
Key Quotes:
“Rallies are seen as the daily volatility has stabilized and as the daily stochastic has picked up to 121.44 (daily Bollinger moving average) ahead of 122.38 (daily parabolic) and 123.22 (daily Bollinger upper band and declining trendline).”
“This last barrier is crucial as its break would reduce the downside threats of a dip back to the supports at 119.41-119.62 (weekly Bollinger moving average) and would pave the way for a sustained recovery to 124.05-124.12 (weekly parabolic), 126.47 (weekly Bollinger upper band). Conversely a drop below 119.62 would send a strong sell signal to 115. The supports are at 120, at 119.41-119.62, at 118.46- 118.60, at 117.50, at 116.30 and 115-115.20.”
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