Euro Extends Its Gains Against The Japanese Yen Today

The EUR/JPY also has an upside bias today.  The pair moved above and closed above the 200 day moving average on Friday at the 131.08 level.  This was the 2nd breach and close above the level since May 8th.  At that time, the price reversed back lower the next trading day as momentum and the break failed.  Will the momentum continue this time?

Today, the pair has extended the gains from Friday to 133.41 but has fallen back toward the 133.00 level in the light trading conditions.   Nevertheless, the  price remains above the close from Friday at 132.74.

Prior to May 8th (when the 200 day MA was breached initially), the pair has remained below the 200 day moving average since August 25th 2008.  This is significant from a bullish perspective.  The 38.2% retracement of the longer term move lower from the July 24th high, comes in at the 134.16 level.  This would be the next target level on the upside.

The bias remains positive as the  price remains above both the 100 hour moving average (131.24 is the current level and rising) and the 100 day moving average (130.93 today).  A break below these levels will be needed to change the medium and longer term bias.

Subscribe by RSS Subscribe by Email