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 is rallying from the 38.2% retracement level seen in the 4H chart. The RSI in the 4H chart also tested the 40 level as support.
- The RSI in the 1H chart has broken below 30, and is now testing 60. The price action has retraced 50% of the decline since last Thursday.
- After this upswing, another decline can be anticipated, especially if the market stays below the 113.00 area, 61.8% retracement.
- The next short-term target for the bearish outlook near the 110.00 area. This is between 50% and 61.8% retracement, and is residence of the SMA 200.
- The decline might also find support at 190.55 (61.8% retracement).
- A break below this opens up a further bearish outlook down towards the 106.80 low.
Has the EUR/USD completed its correction rally, and onto a large downswing? We would love to hear what you think.
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Fan Yang CMT
Chief Technical Strategist