(114,40) The EUR/JPY confirmed a weak closing well below the low of the previous session; a possible closing tonight below 113,65 will confirm a s/t top for this cross suggesting lower levels and in our view this could mean even a 110 undershooting but for sure a test of the support line at 111,25!!!! The indicators of the daily chart are still positive but still well overbought and still showing potential negative reversals. The indicators of the s/t charts are instead negative supporting further consolidation/ correction. The drop below 114 started forming bullish divergences suggesting a possible change of the tone to negative, but we want to wait for further confirmations. Anyhow if we are right the cross should find resistance at 114,60 before the former support line at 115,20. We stay on the sideline, still waiting for a sensible correction.
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Future Trend Research