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June 20, 2014
DAX short-term opportunities
June 26, 2014

The FX pair EURJPY is at a crucial crossroad that could decide the longer-term trend. Medium-term trend is currently bearish as price is below the Ichimoku cloud resistance and is making lower lows and lower highs.  Short-term trend is neutral and this pair is challenging important short-term resistance that could change trend to bullish. The 139 price level is an  important resistance level that if broken we could see a swift move towards the next important intermediate-term resistance at 140.

eurjpy

As long as this pair is below 139 I believe that short positions should be preferred. If prices get rejected at the resistance level of 139 we should expect a move towards 137.50 at least. The Ichimoku cloud analysis tells us that trend is not clear and that we are closer to breaking short-term resistance.

eurjpy2

The weekly chart above shows us that we are touching or very close to touch the Ichimoku cloud support. This is a good sign for bulls as this level is strong support. Bulls want first to break above 139 resistance and then above the green trend line resistance at 140-140.50. Breaking the 2nd resistance will be a very bullish sign that will increase the chances of new highs. However bulls should be very cautious if support at 137 is broken downwards as this could mean that a new downward leg has started targeting  132-134.

As always, thank you for taking the time to catch up on my thinking.

Alexandros Yfantis
Alexandros Yfantis
Fascinated by financial markets, studied International Securities Investment and Banking in the UK, works as a Portfolio Manager in Greece and runs a technical analysis website. Enjoys travelling and spending time with his family and preparing for the black belt in Korean Karate.