Wednesday March 31, 2010 - 19:44:25 GMT
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FXTimes: Daily Technical Update EUR/JPY Completes Kilroy
EUR/JPY Completes Kilroy
- Daily: The EUR/JPY has been consolidating since February, right after a break below the 127.00 support.
- The market is showing strength, as it broke above the neckline of a
Kilroy (reverse head-and-shoulder). This price action suggests further
bullish attempt at least in the short-term towards 127.00 (50%
retracement) and maybe 128.75 (61.8% retracement).
- The reason for such conservative projection is that the overall
mode is still bearish. But if 127.00 is broken, we may have a bullish
attempt coming in the intermediate term as well.
- Weekly: In the weekly time-frame, we see the
bottoming action just above 120.00. The 78.6% retracement level is
below the bottoming action, near 118.70.
- The stochastic is rolling over from the oversold area, but does not show any strong bullish attempt.
- In this chart, we also see that the 127.00 level is very important,
and if the market breaks above that, the market may stay bullish in the
- For now, it may be prudent to stalk the current rally as it
approaches 127.00. If the market tops off there, and a decline breaks
below the rising trendline on the daily chart, it may reach 118.70.
Commodity Trading Advisor
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All screenshots are made from VT Trader 2.0 and are of actual market data at the time of the screenshot.
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