Best Financial Markets Analysis Article Over the last few months the price action in EUR/JPY has been on the choppy side, with the 2009 recovery slowing ahead of a 50% retracement level. The Daily chart now appears to be on the cusp of giving a bear signal, which would further postpone any test/break of this key resistance.

The FX Trader’s view

WEEKLY CHART:

This year’s recovery earlier had the 141.00 50% level in its sights (coincides with two prior high areas from 2003/2004) – it remains elusive for now and there is currently bear risk

DAILY CHART:

The key support at/above the 129.75 76.4% level has now come under pressure (including today) –in the FX Specialist Guide we have said that a break/close below this would be an initial bear signal/trigger now.

The recent failure at the 135.53 21-Sep high, back to the rising support line is, in fact, an early bear sign.

The first bear target would be the 125.63 50% retracement. Initial support may well be found here, but subsequent move lower could close in on the 118.45 76.4% retracement before next decent support emerges.

Only a recovery/close above that 135.53 high would shrug off current bear risk.

Mark Sturdy
Philip Allwright

Seven Days Ahead
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Mark Sturdy, John Lewis & Philip Allwright, write exclusively for Seven Days Ahead a regulated financial advisor selling professional-level technical and macro analysis and high-performing trade recommendations with detailed risk control for banks, hedge funds, and expert private investors around the world. Check out our subscriptions.

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Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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