FX May 15, 2019 / 02:14 pm UTC

Chart EUR/JPY Update: Testing Key Longer-Term Markers

By Nicholas Rose
R1123.25~*mid-May high volm
S1122.35~*uptrend fr 2012
R2123.60*10-May high
S2122.05*62% ret YTD rally
6 & 7-May highs
top of 3-Jan low spike
R4124.70/ 125~*Feb-May high volm
S4118.72**3-Jan YTD low

Asterisk denotes strength of level

15:00 GMT - Today's trade could be a key m/term directional marker—brisk decline has dropped the market into a precision test of the 62% YTD Fibonacci line, in the process testing a l/term uptrend for support—the last time it was tested (Jan-19), EUR spiked strongly. Jump back to close high today will look bullish (especially with Thurs-Fri follow through past 123.25). A low close &/or further loss tomorrow starts to look precarious (the next ref pt. isn't until 118.72).

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