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 continues to rally, pushing above the 111.00 resistance, and 50% retracement. The RSI in the daily is also threatening to break above 60, while the RSI in the 4H is tagging 70, suggesting bullish continuation.
- Looking at the 4H chart, a conventional bullish breakout projection points to 112.50. Using wave ratio analysis, we see that this is also an area of 161.8% extended retracement of the most recent decline, and 61.8% projection or expansion of the most recent rally.
- Looking at the daily chart, we know that we are currently testing the 61.8% retracement level at the 111.85 area.There is another challenge as we meet the 200-period simple moving averages.
- A break above these might suggest more than just the projection to 112.50.
We saw the USD/JPY surge today, so is this Yen Weakness or Euro Strength, or perhaps even greater USD strength? We would love to hear what you think.
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Fan Yang CMT
Chief Technical Strategist