Search ForexCrunch

2013-09-11-EURJPY

September 11, 2013 – EUR/JPY (daily chart) has tentatively broken out above a triangle pattern consolidation that has been in place since May, establishing a 16-week high in the process.  This triangle pattern represented a prolonged sideways consolidation that interrupted a steep bullish trend which had previously been in place since the July 2012 lows around 94.00. Having just broken out above the triangle, price has come close to approaching key resistance at the 133.80 level, which represents the 3+ year high that was established in late May. In the event of a further breakout above the 133.80 resistance level, a continuation of the noted uptrend since July 2012 will have been confirmed, with further upside objectives around the 136.00 and then 138.70 resistance levels.

James Chen, CMT
Chief Technical Strategist
City Index Group

 

Forex trading involves a substantial risk of loss and is not suitable for all investors. This information is being provided only for general market commentary and does not constitute investment trading advice. These materials are not intended as an offer or solicitation with respect to the purchase or sale of any financial instrument and should not be used as the basis for any investment decision.