Forex4you Technical Analysis 08 April 2013

EUR/USD: Bullish Reversal

The EUR/USD pair has probably reversed its down-trend. It's most recent rally has formed a consolidation after hitting several upside targets. This could be a bull flag since we have also had a breakout from the expanding wedge pattern, and it will probably lead to a break higher and move to the 50-day MA at 1.3145 and finally 1.3220. A thrust above 1.3050 could give confirmation. On the downside, the 200-day MA at 1.2880 would have to be breached to open the way for further progress, with 1.2660 providing the next bear target.

USD/JPY: Breakout Higher

The USD/JPY pair has risen strongly and broken above the previous highs, reaching a 4-year new all-time high this morning after gaping up over the weekend. The gap is probably of the 'breakaway' variety since it marks a breakout from the consolidation and is a strong sign of a bullish continuation. Currently price action is at the level of a monthly pivot and it may pull back, perhaps down to the lower level of the gap at 97.80, however, afterwards there is a strong possibility of a resumption up to the next target at 100 and then the support and resistance level at 101.45.

Analysis By: Joaquin Monfort, Forex4you Analyst
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