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EUR/JPY Trading near Support

The EUR/JPY failed to break above 143.80 last week, thus holding back a bullish continuation outlook set to challenge and perhaps break the 145.68, 2014 high.


(eurujpy daily chart, 4/9)

Instead EUR/JPY remained in consolidation and fell during this past week of trading. The pair now hovers above the 140 handle. 

Downside risk: There is support at 139.90, the March low. This is likely to correspond to a rising trendline from Nov. 2013, though a more important one coming up from June 2013 lies beneath with the 200-day SMA.

Bearish scenario: At this point a break  below  139.90 opens up the 138.00 handle and the 200-day SMA. In the near-term, also monitor the a support pivot at 138.65.

Bullish scenario: A break above 142 however maintains the bullish outlook, even though it is technically still consolidating.