Week 24 EURJPY Review: Resuscitation for the EURJPY?
The EURJPY was in free fall for the best part of May, and looked set to continue its downward spiral. In the early days of June 2010, there was deep concern. Yet, in the days that followed, there seemed to be some hope for the ailing EURJPY. My reviews on the EURJPY in weeks 20 and 21 signalled the possible revival with the formation of double bottoms on the H4 charts. This time round, are we about to witness a potential double bottom on the Daily chart?
Having said that, students of Tflow® had fine-tuned their entries on the lower time frames to catch this upflow. Afterall, the EURJPY has already moved up more than 500 pips from the low of June.
If the EURJPY has truly come back to life, then we would have to await the confirmation of the double bottom on the Daily chart, which may still be some distance away.
Looking down to the H4 chart, the EURJPY has certainly shrugged off the lows of the previous 4 weeks, to begin it’s climb along a purple equidistant (ED) channel. (Indeed, last week we mentioned that in Tflow®, this ED channel is powerful. Have you already found out why?) The upper border of the ED channel has proved to be a respected resistance.
With that in mind, going into Week 25,
a) Bulls Will Continue their charge up (Blue arrow) towards the resistance zone to possibly retest the early high of June. And should this attempt be successful, it would be tentamount to the confirmation of the double bottom on the daily chart
b) But beware, Bears (Red arrow) will still be active in bringing price down to the bottom of the ED channel if the mid week support level of Week 24 is breached.
And should you have a peak at the H1 chart, price looks to be headed towards a squeeze… I’m rubbing my hands with great anticipation!
The Doctor’s Advice for the Week: “Patience! How many times have we jumped into a trade, only to see price move in the opposite direction , filling our heart with regret and shock instead of profit?” When we will ever learn?…
Doc, looks like the BEAR won and its heading down.
I noticed the ED channel that’s trending up but also saw a 1234 setup with Pt 4 around the blue arrow indicated by your chart.
Now that’s its down, I cannot help but wonder it will slip until what point. What’s your prognosis for the coming week?
Rdgs
Boon