Long Term Chart of EUR-JPY

By: Mike Kulej

Just like most other Yen crosses, the EUR-JPY has not moved much in recent weeks. That is subjective, of course, but when compared to the past couple of years, the current behavior of this pair is not impressive by any matrix.

EUR-JPY Trends February 2, 2011


There is no question that the EUR-JPY is in a long term downtrend. It fell from almost 170.00 in 2008 to 105.40 in late 2010, but unlike some other Yen pairs, that was not an all time low. Regardless, the price had been making new lows for the trend and remains under the 100 SMA, a clear sign of a downtrend.

Thing on the Upswing?

Things might be changing, though. After making the 105.4 low, the EUR-JPY rebounded to 115.65, which was above the previous minor high. Since then the price dropped again but failed to make a new low so far. If the 115.65, the new resistance, is exceeded, chances for a major trend reversal will increase dramatically.

Other technical indicators should confirm that. One would like to see rising ADX, supporting the development of a new trend. The RSI is another indicator, which should show higher reading, perhaps even reach the overbought level. With any luck, we might witness that during the next 3-5 weeks.

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