EUR/JPY To Consolidate With Bearish Bias
Asia-Pacific exchange net America 2010-02-01 08:07:52
EUR/JPY to consolidate with bearish bias after hitting fresh 9-month low of 124.45 this morning, undermined by unwinding of carry trades amid increased risk aversion, continuing euro-zone fiscal worries. EUR/JPY daily chart negative-biased as MACD bearish, while stochastics stay suppressed at oversold, suggesting sideways or lower EUR/JPY trading near-term. Support at 124.36 (April 28 reaction low); breach would expose downside to 122.07 (March 12 low), then 121.72 (March 3 reaction low). Resistance at 125.72 (hourly chart), then at 126.69 (Friday''''s high); breach would temper near-term negative outlook, targeting 127.11 (Thursday''''s high), then 128.36 (Tuesday''''s high), 129.51 (Jan. 21 high) and 130.31 (Jan. 20 high).