Following the Mar/Apr surge in the EUR/JPY cross the drop back has almost been as dramatic. Lower support has now been found but there is currently a question mark over how long this can hold.
- MONTHLY CHART -CONTINUATION The long term 76.4% retracement earlier provided good support , but recovery from this area has been modest so far, and latest weakness could again put it to the test.
- DAILY CHART: The recent bear leg tested interesting dual support from a 76.4% pullback level at 109.64 bear channel base projection. This stands in the way of the main rising support line at 108.85 currently. The s/term rebound has so far neared resistance from the rising support in the low 113.50s. But more key resistance comes from the channel top at 116.50. This latter would have to be breached before earlier bulls could win favour once more.
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