The FX Specialist view – Long term support in EUR/JPY remains around a 76.4% pullback level (recently retested), and a better recovery is still a prospect following the recent brief sell-off.
- MONTHLY CHART The 76.4% pullback level is still providing good support. The first recovery level of note here is the 118.32 38.2% retracement of the drop from 139.21 Jun-09 high.
- DAILY CHART: In the FX Specialist Guide we have already said that following the recent sharp sell-off and rapid recovery (which represented clear low price rejection) the chart remains well-placed to continue its recovery. Recent breach of the 115.98 04-Mar high provides useful confirmation of this. Already, potential resistance from a bull channel top projection at 117.50 has been eroded today. The next, near upside focus is that 38.2% level from the Weekly chart, but also keep in mind potential resistance from the 119.32/119.63 area, 61.8% of the Apr/Aug-10 drop and the Feb-10 low. Resistance looks likely here and warns against chasing the market up there.
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