$$EUR/JPY technical report classic 06.13

 EUR/JPY:Setbacks have finally stalled out ahead of 95.00 and with daily studies violently oversold, the market is now looking for a healthy corrective bounce. However, we still contend that this corrective bounce could develop into something more significant, and prospects for a major longer-term base from current level is not to be ruled out. Look for a break and close back above 100.00 to help reaffirm our bullish outlook.

##EUR/JPY technical report classic 06.12

EUR / JPY: Setbacks finally blocked from 95.00 and daily studies violently saturated, the market is now seeking a corrective bounce in good health. However, we always support that this corrective rebound could be transformed into something more meaningful, and prospects for an important base level long term current should not be rejected. Look for a break and close back over 100.00 to reaffirm our optimistic Outlook.

: EUR/JPY technical report classic 06.07

07 June 2012 05: 28 GMT

EUR/JPY: Setbacks have finally stalled out ahead of 95.00 and with daily studies violently oversold, the market is now looking for a healthy corrective bounce. However, we still contend that this corrective bounce could develop into something more significant, and prospects for a major longer-term basis from current level is not to be ruled out. Look for a break and closed back above 100.00 to help reaffirm our bullish outlook.

"" EUR/JPY Classical Technical Report 06.06

06 June 2012 06:18 GMT

EUR/JPY:Setbacks have finally stalled out ahead of 95.00 and with daily studies violently oversold, the market is now looking for a healthy corrective bounce. However, we still contend that this corrective bounce could develop into something more significant, and prospects for a major longer-term base from current level is not to be ruled out. Look for a break and close back above 100.00 to help reaffirm our bullish outlook.

¥ € EUR/JPY Classical Technical Report 05.23

EUR/JPY:The corrective pullback from the March 111.40 highs continues, and at this point, the close below the 200-Day SMA could open the door for a more significant decline below 100.00 over the coming days. However, with daily studies now looking stretched, we still hold onto a constructive outlook and will look for setbacks to stall out over the coming sessions in anticipation of a major bullish reversal. But back above 103.00 is now required at a minimum to relieve immediate downside pressures.

:> The Safe Haven Trade: EURJPY

The Euro – Japanese yen currency pair is another Euro cross often associated with strong trends. This pair is the quintessential risk on, risk off currency combination that is often noted for its correlation to US stock indices. Pictured below we can see the ascent of the EURJPY, advancing as much as 8080 pips from the inception of the European currency. Its climb is very similar to the EURGBP currency pair but it should be noted that the EURJPY moved nearly twice as much in terms of pips. It is important to note that ATR levels are considerably greater than other pairs, peaking in May of 2008 at 580.
After reaching this peak in volatility in 2008, the EURJPY promptly declined along with other world markets. Lets look and see why the Japanese Yen has directly appreciated due to ongoing economic disperity.

 Safe Haven Status
The recent decline in the EURJPY has come about due to the breakdown of the world economy. The Japanese Yen has appreciated in value during this time due to its status as a safe haven currency. This is primarily due to Japan being a net investor in foreign assets. As a net investor, Japanese investors hold more outstanding foreign investments than Japanese assets. When economic times get difficult, Japanese investors tend to bring their money home putting demand pressure on the Yen. This is the motivating reason behind the 7276 pip decline through today’s trading. As investors increasingly withdraw funds from the European continent due to their ongoing debt crisis, the Yen is expected to continue its appreciation.
Trading the EURJPY
Trading a pair like the EURJPY is suited for both momentum and trend traders. Due to its long lasting trends, it is critical to identify market direction before applying an oscillator. This can be done using the blocking method mentioned in the March 22nd edition of Chart of the Day. Once a directional trading bias is found we can use MACD to assist in finding momentum and entry points on our charts.
Below, we have MACD with a 12,26,9 input setting on a EURJPY 4Hour chart. Traders can gauge market momentum by using the MACD Zero line. Breakout traders may also use the pricing channel to look for a breakout of resistance and a return to the longer standing uptrend. Regardless of the method traded, keeping an eye on these levels will help astute traders better navigate the EURGBP.

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€ EUR/JPY Classical Technical Report 5.21

EUR/JPY: The corrective pullback from the March 111.40 continuous highs, and at this point, the close below the 200 - Day SMA could open the door for a more significant decline below 100.00 over the coming days. However, with daily studies now looking clay, we still hold onto a constructive outlook and will look for setbacks to stall out over the coming sessions in anticipation of a major bullish reversal. Goal back above 103.00 is now required at a minimum to relieve immediate downside pressures.

€ / ¥ EUR/JPY Classical Technical Report 05.18

18 May 2012 06: 26 GMT EUR/JPY: The corrective pullback from the March 111.40 continuous highs, and at this point, the close below the 200 - Day SMA could open the door for a more significant decline below 100.00 over the coming days. However, with daily studies now looking clay, we still hold onto a constructive outlook and will look for setbacks to stall out over the coming sessions in anticipation of a major bullish reversal. Goal back above 103.00 is now required at a minimum to relieve immediate downside pressures.

€ /¥ EUR/JPY Classical Technical Report 05.17

17 May 2012 07:10 GMT   EUR/JPY:The corrective pullback from the March 111.40 highs continues, and at this point, the close below the 200-Day SMA could open the door for a more significant decline below 100.00 over the coming days. However, with daily studies now looking stretched, we still hold onto a constructive outlook and will look for setbacks to stall out over the coming sessions in anticipation of a major bullish reversal. But back above 103.00 is now required at a minimum to relieve immediate downside pressures.

€/¥ EUR/JPY Classical Technical Report 04.24

24 April 2012 06: 26 GMT

EUR/JPY: The corrective pullback from the March 111.40 highs looks to have finally found solid support in the 105.00 area and from here we look for the formation of a medium-term higher low in favor of the next upside extension, eventually back above 111.40. Ultimately, only a weekly close below 105.00 would negate and give reason for concern.

€ EUR/JPY Classical Technical Report 04.23

EUR/JPY: The corrective pullback from the March 111.40 highs looks to have finally found solid support in the 105.00 area and from here we look for the formation of a medium-term higher low in favor of the next upside extension, eventually back above 111.40. Ultimately, only a weekly close below 105.00 would negate and give reason for concern.

EUR/JPY Classical Technical Report 04.20

 EUR/JPY:The corrective pullback from the March 111.40 highs looks to have finally found solid support in the 105.00 area and from here we look for the formation of a medium-term higher low in favor of the next upside extension, eventually back above 111.40. Ultimately, only a weekly close below 105.00 would negate and give reason for concern.

== EUR/JPY Classical Technical Report 04.19 ==

EUR/JPY:The corrective pullback from the March 111.40 highs looks to have finally found solid support in the 105.00 area and from here we look for the formation of a medium-term higher low in favor of the next upside extension, eventually back above 111.40. Ultimately, only a weekly close below 105.00 would negate and give reason for concern.

** EUR/JPY Classical Technical Report 04.18

EUR/JPY:The corrective pullback from the March 111.40 highs looks to have finally found solid support in the 105.00 area and from here we look for the formation of a medium-term higher low in favor of the next upside extension, eventually back above 111.40. Ultimately, only a weekly close below 105.00 would negate and give reason for concern.

** EUR/JPY technical report classic 04.12

12 April 2012 05: 54 GMT

 

EUR/JPY: The market is finally in the process of correcting following the surge to fresh latest 2012 highs just over 111.00. From here, we see risks for further weakness towards the 103.00 area, but ultimately any additional setbacks should be well supported in favor of a resumption of the newly formed bullish trend. We contend the cross has carved a major cyclical bottom and the longer-term risks from here are for continued strength. Only a weekly close back under 102.00 would delay outlook and give reason for concern. 

EUR/JPY technical report classic 04.06

EUR/JPY: the market is finally in the process of correction after the last fresh wave reaches 2012 summits more 111.00. From there, we see the weakness of the further risk to 105.00, but ultimately any setback additional area must be well supported for the resumption of the newly formed upward trend. We support the cross carved a significant cyclic background and long-term here are force. Only back under 102.00 would delay outlook and give reason to worry.

EUR/JPY Classical Technical Report 04.05

 EUR/JPY: The cross continues to show evidence of the formation of a meaningful base, with the recent break back above 105.00 further confirming bullish bias to accelerate gains through latest key resistance in the form of the 200-Day SMA and just over 111.00 thus far. Daily studies are however unwinding from stretched levels so we would not rule out the potential for a bit more of a consolidation and pullback towards the 105.00-107.00 area, before the market looks to resume its upward trajectory.