EUR-JPY: With a loss of upside momentum resulting from the cross's inability to push higher on Thursday, driving EUR-JPY to a low of 122.04 before closing at 122.92 at the end of the session, further downside threats remain, as the cross continues that weakness in early trading today.
In such a case, its Feb. 8, 2010 low at 121.55 will be initially targeted with a loss of there turning focus to its 2010 low at 120.68, where a break will resume its broader medium-term downtrend and switch attention to the 119.06 level, its Feb. 23, 2009 low, ahead of the 115.63 level, its Feb. 17, 2009 low.
On the upside, above the 124.37 level must be traded to resume its corrective recovery toward the 126.51 level, its Feb. 1, 2010 low. A reversal of roles is expected to occur there and turn the cross back down again. On the whole, EUR-JPY remains biased to the downside medium term with a retarget of its year-to-date low at 120.68 eyed.
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.