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30.05.2012 10:14 AM
EUR/JPY Intraday Technical Analysis

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The spot rate is presently testing the intermediate support of its medium term bearish channel at 98.80 and is likely to rebound. However, a breakdown of these levels will release significant potential enabling to reach its lower limit in 98.00.

Technical indicators provide buyers signals and as long as the support is not broken, the assumption of a rebound is true. Bollinger bands have greatly tightened in recent days showing a decline in volatility and the imminence of a violent movement.

Taking into account to previous events, the market will provide a bullish opportunity at the level of 98.80 with the 1st objectives seen at 99.40 and 99.60 levels. A break through 98.60 will cancel this scenario.

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