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2013-09-19-EURJPY-1024x552

September 19, 2013 – EUR/JPY (daily chart) has maintained its marked strength, breaking out above the key 133.80 resistance high (last hit in May) to establish a new high near 135.00 that has not been seen since November of 2009. This break to the upside that occurred today comes in the midst of substantial euro strength coupled with yen weakness against the greenback. Having broken out above 133.80, the pair has confirmed a continuation of the long and steep bullish trend extending back to the July 2012 lows near 94.00. More recently, the past two weeks have seen the pair break out above a large triangle pattern consolidation on its way to target the 133.80 level. Now that this 133.80 breakout has occurred, the next key objectives to the upside reside around the 136.00 and then 138.70 resistance levels. Downside support on any pullback currently resides around the 133.00 area.

James Chen, CMT
Chief Technical Strategist
City Index Group

 

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