Friday, April 25, 2014

Eur/jpy technical Update.


Technical update of eur/jpy Intraday chart

What are the symptoms of a mature trend and by "mature trend" ,I means there is a chance of reversal to test the support again. We have seen breakout and price manage to hold high prices and then rapid moves. If you watch the chart closely then you always look for logic and what is the "Context".

For me, I have spotted out strong downside rally after the top with overall trend is bearish with correctional bottom (When price had a downside rally and spike again and test the low of prior bottom with a spike then it is know as correctional bottom)

Spike from that correctional bottom is strong and its not one it had two-three spikes and when we have strong and usually when we have breakout and such strong trend, then price use to "Gravitate" towards the high.

"Test" of high usually don't always means that it has to test the high as all the attempts had failed and price makes a new low and attempt to rise of that low now is not strong and no follow through

Price is ready to rally again to make a new low below its recent one and that would be strong rally and it could be another strong bullish so no harm in risking 20-30 pips (Very huge risk as I never risk more than 10-15 pips ) but still swing trading opportunity can really takes the momentum to strong bearish trend.

Chart of eur/jpy below tells what is Real "Context"

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