Wednesday, November 18, 2009

another EUR/JPY daily chart

couple days ago we looked at a daily chart of EUR/JPY showing a triangle type pattern. the rate has since broken below the support line but that didn't really precipitate any significant downside, at least not yet.

perhaps that it because the rate is still holding above the trendline coming up from the low early this year, which also happens to be a major 2/3 speedline. a violation of this support would be more consequential than that shorter term line highlighted in the previous post. if that trendline breaks, then look for support in the vicinity of the .755 speedline below it (purple line) though the pair could certainly trade well below that before finding any real support.

as with all the charts I post, I suggesting clicking the image to view it full size.