(128,50) The EUR/JPY confirmed last night a very weak closing breaking below the suggested neck line of a S_H_S formation. The cross even broke below the 100 days line confirming the break by a closing and now it is on the way toward the 200 days one , at the moment found at 122,28!! Only a return above 132,75(the right shoulder) will abort this scenery! The indicators of the daily chart are now well negative as well as those of the s/t ones supporting further weakness. Bullish divergences in the hourly chart still support a negative tone. In the s/t only an hourly closing above 129,25 will postpone further weakness. While below we faovur a direct extension of the decline toward a possible new target at 127,59 but again we believe that the downside potential is much greater suggesting a 125 undershooting!!
Read the full report: EURJPY 08.08
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