EUR/JPY: technical analysis – September 11, 2012

The inside day, yesterday, coming as it did at the end of a strong up-trend, may be an indication of reversal. There is downwards pressure today and a topping pattern with several shooting star candlesticks on resistance at the day’s highs of the hourly chart, which reinforces the bearish outlook. The pair will probably fall from here, at least to the 100-day MA at 99.40 but then possibly down to the lower channel line at 98.90. Alternatively a break back above the 100.42 highs might signal a continuation up to the upper channel line at 101.15.

Written by Forex4you