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28 May 2015
EUR/JPY: Potential for new highs in coming weeks - Westpac
FXStreet (Bali) - David Coloretti, CMT, Technical Strategist at Westpac, sees potential for further new highs in EUR/JPY in the coming weeks.
Key Quotes
EURJPY made a new 4 month high in mid-May, only to decline 3% in the following week. The decline appears to be corrective in structure and we see potential for further new highs in the coming weeks."
"We note that the recent decline formed a base above Fibonacci support at 1.3281 and the lower daily Bollinger band. As price was forming a base, so too was ST momentum (RSI), importantly above the 50 pivot (remains in uptrend)."
"Today’s close completes a bullish multi-day pattern, similar to the April low. We are now focused on a close above the upper daily Bollinger band at 136.00/25. This will confirm a sustainable uptrend."
Key Quotes
EURJPY made a new 4 month high in mid-May, only to decline 3% in the following week. The decline appears to be corrective in structure and we see potential for further new highs in the coming weeks."
"We note that the recent decline formed a base above Fibonacci support at 1.3281 and the lower daily Bollinger band. As price was forming a base, so too was ST momentum (RSI), importantly above the 50 pivot (remains in uptrend)."
"Today’s close completes a bullish multi-day pattern, similar to the April low. We are now focused on a close above the upper daily Bollinger band at 136.00/25. This will confirm a sustainable uptrend."