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Today’s Trading Edge: EUR/JPY – Heading for New Lows

Posted by Edward Moya on May 19, 2014 2:01:00 PM

WWM EURJPY May 19 2014

Price on EUR/JPY has consolidated around 139 and 144 for the past few months.  The recent 5-day losing streak is making new lows that has price trending well below the 50-day and 100-day Simple Moving Averages.  If downward pressure continues, immediate support will come from the 200-day SMA at 137.80. 

If the momentum in the selloff in the euro and recent strength in the yen continue a move may ultimately target a move towards 134.30, which happens to be the 127.2% Fibonacci expansion level of the B to C move.  It is around that area that price may form a bullish Gartley pattern that may finally put an end to the downward move.  Major resistance will come from the psychological 140 handle. 

Edward J. Moya

Technical Strategist

WorldWideMarkets Online Trading

 

 

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