Quote:
Originally Posted by tradermoe
i think it might be time to go short on the eur/jpy again. on the daily chart it has failed to break through the 50% retracement and we have a horizontal trendline a bit above the 50% line and a down trendline. plus price just hit the 50ma in the same area and the rsi doesnt seem like it will be able to break its 60 line, which when you look in the past on the chart the 60 has acted as a good support/resistance line. we will have to see how the rest of the day goes but if the present candle closes as a long legged doji, i think we can expect a drop to the 78.6% retracement area minimum, so around 155.00.
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Given the high positive correlation of the EUR/JPY with the stock market and the stock market rallying, EUR/JPY looks poised to move higher.
EUR/JPY bounced from the 154.91 congestion area and 61.8% Fibonacci level of the 152.07 Low/159.52 High swing. It has formed a classic 1-2-3 or a-b-c pattern where a beak above point to opens up 162-164.00.
Missing the entry at 156.00-67 area, a second chance entry remains at a close above the 159.52 resistance (January 30th high).
If EUR/JPY fails to get above 159.52, then I would tend to agree with you that we could see the 152.00 handle taken out.
Only time will tell.
See the attached chart:
