Chart of the Day – EUR/JPY
James Chen from FX Solutions at 12/04/09
(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; horizontal support/resistance levels in yellow; uptrend lines in green; downtrend lines in red; 50-period simple moving average in light blue.)
12/04/2009 – EUR/JPY – Within the past week, yen weakening has been one of the dominant themes, as shown on the accompanying EUR/JPY daily chart. This yen weakening has manifested itself as significant recoveries in the USD/JPY as well as all of the major yen crosses. Price action on EUR/JPY has been traveling in a well-defined trading range with no discernible long-term trend since March. The current bullishness in the pair is an extension of a pronounced bounce off the bottom of the range, around the 127.00 support region, where a clear hammer candle formed. Further yen weakness off of this range support bounce could potentially target the top of the range, around the general 139.00 resistance area.
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