Technical Update - USDJPY cannot penetrate 137, can it hold 134? EURJPY in wide range
Kim Cramer Larsson
Technical Analyst, Saxo Bank
USDJPY seems to have trouble moving above 137. If the pair drops below 134.25 it is likely to also drop to support around 131.50.
It has formed what could be a rising wedge like pattern. It has broken the lower rising trend line and if it breaks below 134.25 it has confirmed it is a top and reversal pattern.
131.50 is key support however, if it breaks below that there is not much holding it until around 126.35.
If USDJPY breaks above 137 the potential top and reversal pattern is demolished.
EURJPY trading in a wide rising channel. If RSI breaks above its falling trend line EURJPY is likely to move towards 145-146. If on the other EURJPY breaks below 139.80 the pair could be hit by selling pressure taking it down to 135-133.
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