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FOREX Trading: EUR/JPY Retraces Half of Rally from January Low

By , Sr. Technical Strategist
23 January 2013 14:29 GMT

Afternoon Technicals (all charts)

Other TA (crosses, COT, etc.)

FOREX Trading and Technical Analysis Observations

I am trading the Yen crosses actively (intraday basis) and all updates are given through Twitter @JamieSaettele. I don’t know where the market is headed on a day to day basis (and if anyone says they do then they are lying) but volatility does allow short term players to take advantage of support, resistance and intraday setups.

The EURJPY has retraced half of its rally from the January low and has responded intraday at steep trendline support. The 20 day average and 1/16 low are potential support near 11650 in the event that weakness extends. 11887-11930 is resistance in the event of strength from ABOVE this morning’s low (11704).

The GBPJPY is below its 20 day average (a form of divergence since the EURJPY is above its 20 day average) and at a low for 2013, having dropped to its former 4th wave (1/9 low) at 13737. A larger drop is probably in the works but this is a good place for a ‘surprise’ pop. 14200/50 is estimated resistance if strength resumes from ABOVE 13925. Weakness below there would shift focus to 13730/85 (161.8% extension of decline from the high and 12/19 high).

EURJPY – Daily

Forex_Trading_EURJPY_Retraces_Half_of_Rally_from_January_Low_body_eurjpy.png, FOREX Trading: EUR/JPY Retraces Half of Rally from January Low

Prepared by Jamie Saettele, CMT

GBPJPY –Daily

Forex_Trading_EURJPY_Retraces_Half_of_Rally_from_January_Low_body_gbpjpy.png, FOREX Trading: EUR/JPY Retraces Half of Rally from January Low

Prepared by Jamie Saettele, CMT

--- Written by Jamie Saettele, CMT, Senior Technical Strategist for DailyFX.com

To contact Jamie e-mail jsaettele@dailyfx.com. Follow me on Twitter for real time updates @JamieSaettele

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Jamie is the author of Sentiment in the ForexMarket.

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23 January 2013 14:29 GMT