By: Colin Jessup
The EUR/JPY has been in a bearish trend more or less since April of 2011 when it peaked at 123.33 after almost 3 years of being overall bearish. The overall high was actually established in May of 1990 when the pair reached a high of 188.22! Price could be heading for a re-test of the 10 year low established in October 2000 after breaking the 3 year low from September 2008 and establishing a new 5 year low with the current day's trading.
With today's price action, we find ourselves in an area of little resistance, a technical vacuum if you will. Today's daily candle has closed below a daily S/R zone at 99.39 while completely engulfing yesterday's bullish movement. This is a pretty strong indication of a bearish continuation and if so we won't see a lot in the from of support until we hit 97.75 and 95.75 below that.
If the bulls find their legs and turn the tables, we should see resistance at 100.20 and 101.33 beyond that. That said, my sentiment remains bearish as the overall trend is such, and we are well below the moving average at 104.
Happy Trading!
