Forex Depth Analysis: EUR/JPY

Daily Forex Technicals | Written by Finotec Group | Nov 21 08 09:29 GMT |

Japanese Yen sharp fall benefits major currencies. The yen declined against the dollar and the euro as a rebound in Asian equities revived demand for higher-yielding assets financed with loans in Japan. The yen also weakened against the Australian dollar, a favorite of so-called carry trades, after the Reserve Bank of Australia bought its own currency for at least the fifth time in four weeks. The dollar dropped versus the euro on speculation the Federal Reserve will cut interest rates and flood the financial system with cash as a recession causes prices to fall. The following technical analysis gives us a detailed lookout on what is expected to happen to EUR/JPY. The buying point is at 121.50; based on a break of a strong level. Previous resistance is the take profit at 124.33 Fibonacci 38.2% is the stop loss at 119.44 The selling point is at 119.39; based on a clear downtrend. Previous support is the take profit at 116.42 Fibonacci 61.8% is the stop loss at 121.30 To strengthen our analysis; we use many other indicators, starting with MACD (Moving Averages convergence divergence); we notice divergences on histogram MACD. In order to find the power of the market, we use RSI (Relative Strength Index).With RSI; we can determine that the market fails to break 70% level.. The ROC oscillator is very important to understand the demand in the market and as we see on the graph it is in the highest level. The stochastic oscillator crosses %D line and gives us a bearish signal. * The following analysis is for information only; Finotec is not responsible for any decisions or misinterpretations based on the given text. Finotec Group Inc. http://www.finotec.com/ Disclaimer: FINOTEC Tradings Market Commentaries are provided for informational purposes only. The information contained within these reports is gathered from reputable news sources and not intended as investment advice. FINOTEC Trading assumes no responsibility or liability from gains or losses incurred by the information herein.