Dec 07 12 09:56 GMT
Weekly
Last Candlesticks pattern: Bearish engulfing
Time of formation: 10 Apr 2012
Trend bias: Down
Daily
Last Candlesticks pattern: Hammer
Time of formation: 28 Nov 2012
Trend bias: Near term up
EUR/JPY – 106.55
As the single currency has retreated after rising to 107.96 earlier this week, suggesting a minor top is formed and consolidation with mild downside bias is seen for retracement to 106.00 and possibly to previous support at 105.30, however, previous resistance at 104.59 should limit downside and bring another rise later. A break of said resistance at 107.96 would signal recent upmove from 94.12 is still in progress and further gain to previous resistance at 108.00 and possibly 109.00 would be seen but loss of near term upward momentum should prevent sharp move beyond psychological resistance at 110.00 and risk from there has increased for a retreat later.
On the downside, only below the Kijun-Sen (now at 104.15) would suggest a top has been formed and downside risk is seen for retracement of recent upmove to the Ichimoku cloud top (now at 102.75, however, reckon the lower Kumo (now at 101.24) would limit downside and price should stay well above previous support at 100.34.
Recommendation: Buy euro again at 105.00 for 107.80 with stop below 104.00.
IMOH, Clement I
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