Free Trial

Bear Flag Formation Confirmed

EURO-YEN TECHS
  • RES 4: 125.77 High Sep 15
  • RES 3: 124.43 Low Sep 9 and recent breakout level
  • RES 2: 124.10 50-day EMA
  • RES 1: 123.28 High Sep 22
  • PRICE: 123.08 @ 17:20 BST Sep 28
  • SUP 1: 122.28 61.8% of the Jun 22 - Sep 1 rally
  • SUP 2: 121.82 Low Jul 15 and 16
  • SUP 3: 121.24 2.0% 10-dma envelope
  • SUP 4: 121.14 76.4% retracement of the Jun 22 - Sep 1 rally

EURJPY initially traded lower Monday to breach last week's low of 122.52, before staging a modest bounce. Nonetheless, a bear flag formation has appeared on the chart and the break lower reinforces the bearish nature of this pattern. Recent weakness has also seen the cross clear a key support at 124.43, Sep 9 low and clear the 50-day EMA. The focus is on 122.28 next, 61.8% of the Jun 22 - Sep 1 rally. Initial resistance is at 123.28, Sep 22 high.

MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.