Thoughts from Fxcm
23:54 EUR/JPY: Off Hard Overnight On More Long Liquidation July 25. EUR/JPY traded off some more overnight, adding to losses seen in Asia yesterday and in trading Monday. From a record spike high of 169.05 seen in Asia on Monday, the cross has fallen over three yen, moving down to as low as 165.86 in New York overnight. More stops look to have been tripped on the break below 166.50, just below the Ichimoku kijun line. EUR/JPY has now traded below both the tenkan and kijun lines. The tenkan line looks to be turning down to boot whilst the kijun line looks to flatline. Some dealers no doubt are surmising whether the cross will move down towards the still ascending cloud between 162.60-163.83 today and the ascending moving average at 162.47. Such a retracement is within the bounds of possibility with USD/JPY breaking clearly below its cloud yesterday. Roughly 38.2% Fibo retracement of the move up from the mid-161 level to 169.05 from June 13 has been achieved. 50% retracement of this move comes in at around 165.20-25 and 61.8% at 164.30-35. These level should also be eyed closed. EUR/JPY currently trades 166.09/12. [email protected]
23:54 EUR/JPY: Off Hard Overnight On More Long Liquidation July 25. EUR/JPY traded off some more overnight, adding to losses seen in Asia yesterday and in trading Monday. From a record spike high of 169.05 seen in Asia on Monday, the cross has fallen over three yen, moving down to as low as 165.86 in New York overnight. More stops look to have been tripped on the break below 166.50, just below the Ichimoku kijun line. EUR/JPY has now traded below both the tenkan and kijun lines. The tenkan line looks to be turning down to boot whilst the kijun line looks to flatline. Some dealers no doubt are surmising whether the cross will move down towards the still ascending cloud between 162.60-163.83 today and the ascending moving average at 162.47. Such a retracement is within the bounds of possibility with USD/JPY breaking clearly below its cloud yesterday. Roughly 38.2% Fibo retracement of the move up from the mid-161 level to 169.05 from June 13 has been achieved. 50% retracement of this move comes in at around 165.20-25 and 61.8% at 164.30-35. These level should also be eyed closed. EUR/JPY currently trades 166.09/12. [email protected]