Forex Chart of the Week July 12th
EURJPY – After a Long Fall, Lots of Rejections
After falling for most of this year and recently off the 20ema way back around 125.00, the pair started to struggle to post a lot of weekly closes below 110. In fact, almost every week it tried, it failed on 6 out of 7 attempts with many of them producing wicks and rejections to the downside. Perhaps the market is just not ready to make serious ground below 110 at this point as the rejection from two weeks ago is most telling with it forming a virtual pbar and has since bounced last week climbing a few 100 pips off the lows. One should not get too confident about the upside yet. Although it looks promising for another upside attack on the 20ema way above 115, the pair has yet to get its upper gears moving for some impulsive attacks to the upside. Look for another dip to 110 or even a little bit below around 109 and then shoot for 111.50 and 113.50 with a hope for the 115 touch. If you want to wait for a bearish signal the wait for a 20ema touch to sell with stops above.
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