The EUR/JPY formed yesterday a negative outside day reversal with now 106,90 – 104,65 the levels to follow in the coming hours. A daily closing below 104,65 will support lower levels suggesting a return toward the 103,00 – 102,50 area!
The indicators of the daily chart are now below the line and also those of the s/t charts are this morning in negative territory supporting lower levels. Bullish divergences even in the 4h chart confirm a negative tone. In the s/t only an hourly closing above 105,55 will postpone the decline favouring a nre 106 overshooting with the 200 hours line at 106,56 the attraction.
Despite the negative outside we do not suggest to be short below 105; we believe the upside potential of DOLL/YEN is greater than the s/t downside potential of EUR/DOLL!!
We stay on the sideline for now.
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FUTURE TREND RESEARCH