EUR-JPY: A follow-through to the upside on its hammer candle formation the past week has seen it breaking above its Dec. 16 high at 130.76 and testing a high of 131.84 before closing at 131.74. It was seen maintaining those gains in early trading today.
EUR-JPY must hold above 131.59 or the 130.76 level to keep its corrective recovery off the 127.29 level intact and set the stage for further higher gains toward the 134.53 level, its Dec. 4 high, with a loss there resuming its recovery from the 126.83 level toward at the 135.37 level, its Nov. 10 high.
Correction, if triggered, will initially target the 131.59 level, with a decline through there aiming at its Dec. 16 high at 130.76 followed by the 128.77 level, its Dec. 9 low, and next the 126.83 level, its Nov. 26 low. The latter level is the trigger for the resumption of its decline initiated from the 134.53 level. A loss there will pave the way for additional downside toward the 124.37 level, its April 28 low. On the whole, the cross has halted its downside weakness at the 127.29 level and now looks to build on it toward the 134.53 level.
Mohammed Isah is a technical strategist and head of research at FXTechstrategy.com, a technical-research Web site. He has been trading and analyzing the foreign exchange market for the past seven years. He formerly traded stocks before crossing over to the forex market, where he worked for FXInstructor LLC as a technical analyst and head of research before joining FXTechstrategy.com. He has written extensively on the forex market and technical analysis and his articles have been featured in The Technical Analyst Magazine, The Forex Journal Magazine, The International Business Times and FXstreet.com. At FXTechstrategy.com, he writes daily, weekly and long-term technical commentaries on currencies and commodities, which are offered to its clients. He also produces
for his subscribers. He provides full coverage of the forex market with specific focus on G10 currencies as well as the commodities markets, with focus on five key commodities.