Simple Moving Average(SMA) 50-period (red), 200-period (bold, gray)
RSI-14 with Simple Moving Average 5-period of RSI attached.
Elliott Wave Principles
Market and Price Action (patterns, candlesticks)
Intraday pivots and Intermediate-term support and resistance
Multiple Time-frame Analysis
- The EUR/JPY pair confirms the downtrend as the rally to start the week failed sustain a break back above the 112.00 pivot.
- The candlestick action also suggests bears are in control. Projections look towards 111.30, between the 50 and 61.8% retracement level. It is also where the 200SMA resides.
- The decline can extend to 109.50 to test the 61.8% retracement level and an important pivot as well from back in September 2010.
- The daily chart below shows the EUR/JPY topping off with sharp bearish action from 114.00. The market has been sideways since 2010 and price action has been bearish. A swing projection towards 106.00 is in sight, but we should probably expect a failure. A target of 107.50 may be more appropriate at the moment (pending a break below 109.50.)
- On the upside. A break back above 114.00 suggests a major bullish attempt to break the 115.66 highs from October 2010. Above that the market can accelerate to 122.00.
Has the EUR/JPY topped off for a major decline? We would love to hear what you think.
Subscribe and become a member to share your views and join live discussions as well as webinars about the markets.