Quote:
Originally Posted by Gregory McLeod
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:
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ok thanks for your input. but wouldnt you say there is a good possibility to move down because it does seem like we are at a pretty strong resistance level. if you look at the horizontal trendline on my chart it seems to have fought off any attempts to break it. also another trendline can be drawn from the 166 area down to the present 159 area. we are also near the 61.8% level also. plus the candle stick patterns. and i noticed on your chart the slow stochastic is moving into overbought and it looks like the macd histogram is starting to level out while the macd lines are still below 0. so when you put everything together it just seems like the odds of the trend moving down are much stronger than it breaking upwards. thanks again for your help it has been very helpful to me.
moe
