The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.
NEW YORK (
: Continued bearishness remains intact following the cross' failure at 102.52, its Dec. 21 low.
This leaves the risk of an eventual return to its Dec. 15 low of 101.02. A violation there will create scope for further declines toward the October low of 100.75. A move below that mark will resume a long term downtrend toward the 100.00 to 99.87 levels, the low range for July 2010, with a loss there extending further downside weakness. Its daily RSI is bearish and pointing lower supporting this view.
On the other hand, on any corrective offensive, EUR-JPY will have to convincingly break and hold above the 102.52 level, its Dec. 21 low, followed by its Dec 02'2011 high of 105.69 to reverse its medium-term bearish tone.
If this occurs it will trigger further upside recovery toward the Oct. 31 high of 111.52 and the Aug. 29 high of 111.92.
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All in all, EUR-JPY faces the possibility of returning to the 101.02 level and beyond.
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.