EUR-JPY Weekly analysis 13 Dec, 2008 - Forex

EUR-JPY Weekly analysis 13 Dec, 2008 - Forex

EUR/JPY Weekly Outlook Much volatility was seen in the EUR/JPY last week but after all, it still managed to end the week higher. The overall outlook remains unchanged. The corrective nature of the fall from 131.02 to 115.88 argues that it's part of the consolidation that started from 113.63. Further break of 126.24 resistance will confirm this case and bring stronger rise to 131.02 and above to complete such consolidation. On the downside, though, below 118.04 will flip intraday bias back to the downside for retesting 113.63 low instead In the bigger picture, as discussed before, whole down trend from 169.96 is still expected to continue after completing consolidation from 113.63. Break of this low will confirm that such fall has resumed and should target 76.4% retracement of 88.97 to 169.96 at 108.08. However, note that as long as 113.63 low holds, consolidation from there might still continue. But upside is expected to be limited below 141.73 cluster resistance (50% retracement of 169.96 to 113.63 at 141.79) to complete the correction. In the long term picture, the three wave corrective structure of the up trend from 88.97 (00 low) to 169.96 suggests that it's merely a correction to the multi decade down trend from 285.56. The impulsive nature of the fall from 169.96 indicates that it's likely resuming the down trend. Focus now will be on whether the whole down trend from 169.96 will extend to retest 88.97 low.
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