EUR/USD Technical Analysis

The euro has fallen again during the trading session on Thursday as we continue to see a bit of a pullback. The 50-day EMA sits just above the 1.15 level, which of course is a large, round, psychologically significant figure and an area where we had seen a lot of resistance previously. So, the question at this point in time looks as if the market is going to test this for market memory. The Euro, of course, has been in a strong uptrend for some time. So, I’m not ready to start shorting it yet, but if we get below the 1.15 level, it’s possible I may end up doing exactly that. In the meantime, I’m waiting to see if we get a reaction to this support region.

USD/JPY Technical Analysis

The US dollar has rallied quite nicely against the Japanese yen as the 148 yen level and the 50 day EMA both offered support. I suspect given enough time, this is a market that could go looking to the 151 yen level, which is an area we had seen a little bit of a double top at previously. So, I do think that might be where we’re heading in the short term. If we were to break down below the lows of the crazy Wednesday candlestick, then that could throw that in the garbage bin. But all things being equal, this is a market that pays you to hang on to it. And clearly it looks like we’re trying to do everything we can to rally.