Forex: EUR/JPY

on Nov 13, 2012
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iNVEZZ (Brussels) In an analysis, published today November 13th, fxtimes.com discusses the outlook for the EUR/JPY and the possible movements of the currency pair’s price. The author, Fan Yang, suggests that there may be a small double bottom coming in the near future. The currency pair has been on a bearish trend since the second half of October, retreating from 105.56 down to 100.32 and breaking below the 200-SMA. And while these signs point to a bearish outlook for the medium term, the forming of a short-term double bottom is a possible scenario.

If price goes beyond the near term resistance area of 101.20-101.28, it could break out towards the previous support level of 102.25, forming a bottom. If instead, the price falls down below 100.00 and especially below 99.50, this would indicate a further bearish outlook for the pair.
The downside trend might occur even in the instance of a double bottom forming, the author points out. However, according to him, the development of such a trend is unlikely, should the price go above the current resistance pivot of 103.35.
Currently EUR/JPY is being traded at 100.97/00 or 4 percent below its opening price for the day.

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