Further loses for EUR/JPY?

By Julian Yosovitch

August 26, 2014 • Reprints

http://www.futuresmag.com/2014/08/26/further-loses-for-eur-jpy#.U_yaVv5fp-o.twitter

The EUR/JPY remains weak and closed at 137.27 yen on Monday.

We see that the currency has recognized the top of the bearish channel as short term resistance.

While the 138.80-139.50level has not been breached, we can still expect even further weaknesses with a view of the market toward lower levels around 136-135.65. Previous lows in the 134.50-134.00 serve as a bottom in this bearish channel.

Only with direct break above 138.80 yen can we expect a further recovery towards 141.30-141.90 where the 61.8% Fibonacci of the entire fall began at 145,65, which is an important resistance for the currency. Let's take a look at the chart.