By Mohammed Isah of FXTechstrategy.com
EUR-JPY: With a reversal of the cross' two-day gain in progress in early trading today, continued vulnerability of further downside weakness remains toward the 128.77 level, its Dec. 9 low, where a break will allow for more downside weakness toward the 126.83 level, its Nov. 26 low.
The 126.83 level is the trigger for the resumption of its decline initiated from the 134.53 level. If a loss of there occurs, it will pave the way for additional downside toward the 124.37 level, its April 28 low. However, if EUR-JPY's Dec. 11 high at 131.59 is violated, focus will then turn to the 134.53 level, its Dec 4 high, with a loss of there resuming its recovery from the 126.83 level toward the 135.37 level, its Nov 10 high. On the whole, EUR-JPY remains susceptible to the downside toward the 128.77 level while below the 131.59 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.