(123,97) The EUR/JPY confirmed a weak daily closing on Friday suggesting that a s/t top could be in place. While below the 200 hours line, now found at 125,22, we expect further weakness toward the support line at 121,55 if not even a direct 120 undershooting!! The indicators of the daily chart are well negative but those of the weekly one are still well above the line and still showing overbought conditions and a potential negative reversal situation. The indicators of the s/t charts are mixed this morning suggesting further consolidation/ correction. The decline still failed to form clear bullish divergences and this is a problem to our view of a lower cross!! Possible rebounds should find resistance at 124,50 before the 200 hours line at 125,22!! We stay on the sideline but still expect further weakness toward 120!!
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Future Trend Research