EUR/USD: Downtrend Continuing
The exchange rate has broken out the price pattern at the highs and reached its downside target at 1.3015. There are, however, no signs yet of the down-trend slowing and so it could continue to the next level of support at 1.2960, where the 50-day MA is situated. Alternatively, a sideways consolidation may unfold, followed by a bounce perhaps, with a decisive break above 1.3050 then targeting 1.3115.
USD/JPY: More Upside Probable
The USD/JPY pair is rallying strongly and it will probably go higher. Using the inverted head and shoulders which formed in 2011-12 to give an eventual upside target we get 92.20, whilst the recent measuring gap also indicates the rally has further to go. The monthly pivot at 88.45, however, stands in the way and will probably resist, with the possibility of a pull-back to the 87.30s before the up-trend resumes.
Analysis By: Forex4you Analyst - Joaquin Monfort.
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