With a break of the EUR-JPY's trading range failing to be sustained and thus pushing the cross strongly higher in today's trading session, we believe further strength could be developing within its broader range (115.67 and 111.54).
While this occurs, EURJPY should eventually trade higher towards the 115.67 level, its Oct. 7, 2010 high. Further bullish buildup above there will target the 119.63 level, its Feb. 25, 2010 and possibly higher.
The risk to this view will be a break below its present range bottom at the 111.54 level. In such a case, the cross will aim at the 110.46 level, its Sept. 16, 2010 low and its early September 2010 low at 109.54.
All in all, the cross remains trapped within its established range while seeking for clear directional moves.
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.