Currency Pair: EUR/JPY
Chart: 15 Min Charts
Short-Term Bias: Long
After touching a low of 160.18 last week, a correction looks to be underway for the euro-yen.
Analysis
After touching a low of 160.18 last week, a correction looks to be underway for the euro-yen. Price action has dipped below the lower channel is the last few hours of trading, and has triggered an oversold RSI signal.
The euro-yen has found support at 161.07 (21.4% Fib level), and should work its way back to the top of the channel. We expect the EUR/JPY to reverse course in the near-term as a bullish divergence in the RSI continues to unfold, and may test 162.28 (50.0% Fib level) for resistance. Price action for the pair should hold within 160.1 to 163.1 for the next few trading session, but may break to the downside in the next few months. Be sure to check out Jamie’s Technical Outlook for the additional information on the major currency pairs.
