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EUR/JPY - Setup For 18-Year High

By Benny Nardino | June 25, 2008

Euro-Yen, EUR/JPY - a fast becoming popular cross in the forex trading community has set itself up for an eighteen-year-high of 188.09. Click chart to Enlarge.

In recent months this cross has been consolidating for this move. A few weeks back we blogged about lack of direction - EUR/JPY At Crossroads. What a great difference a few weeks have made. Since that piece the market did not make the 151.80/152.00 support as indicated but it did violate the support line to 158.57.

The subsequent reversal breached our resistance line of 162.00. This trend is still very much intact by our EUR/JPY monthly chart analysis. From the chart, you could see that a wedge has been formed against the trend line.

However, we see this as a mid-term run. Whatever you do remember the aim is to not get burnt before you arrive at the destination. Take it piece by piece until you get there. Have a great trading day.

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