After a narrow range of fluctuations below the flat level, the euro/yen

Huitong Network2month28Daily News - Tuesday(2month28day)In the Asian market, after a narrow range of fluctuations below the flat level, the euro/yen has since119.14Diving nearby30From point to low point within the time period118.87Afterwards, we recovered some of the decline and traded on119.20frontline.

according toFX678Observations, technical analysts point out that in the weeks leading up to this120.50-123.50After consolidation, the euro/yen has recently fallen significantly below this trading range. The weekly chart shows that the two important support levels are far below the current level, so it is advisable to short. The first important support position is located114.50Nearby, the next important support position is located113.50This reflects the long-term exchange rate structure.

Technical analysis: After the stunning plunge of the euro against the yen, it is advisable to continue short selling

2015Since mid year, the exchange rate has been trading in a downward channel, with the upper limit constructed as a resistance level and the lower limit constructed as a support level.2016year6The month fell below the lower limit of the downward channel, at113.5Get good support nearby. In the following months, it hovered around this point and continued to oscillate unilaterally before reaching the downward channel again.2016year10Month from113.50The rise is a rebound from the self-supporting level and the lower limit of the downward channel.

After a period of upward momentum, a symmetrical adjustment market appeared after breaking the upper limit of the downward channel, and trading was120.50-123.50Range, but for trend traders, this trend is meaningless.

Afterwards, it fell below the position of120.50The long-term support level in the vicinity is worth paying attention to. The current exchange rate is above the downward channel, so the upper limit of the downward channel has evolved from the previous resistance level to the support level, and has fallen to the current level114.50Logically speaking, it is difficult to determine where the support position is located before the nearby support position. This round of decline may be related to2016year11Month to12The rapid upward trend of the month is similar.

Huitong Network pointed out that analysts say,113.50The nearby historical support is complete, but not necessarily strong. Last year, it easily broke through this point in the middle of the year and reached a lower level109.50Afterwards, on113.50Nearby stabilization. Traders must be wary of these pullbacks and sudden increases.
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