Saturday, August 22, 2009

EURJPY reevaluating feb 24, 2009

We broke out of the upper trendchannel and tested the upward trendline at 119.55. Resistance held and that means we might have to look at different options.
Wave 1 ends at 123.69. That is the line in the sand for a wave 4 correction. Crossing this price would mean that a bigger correction is ongoing and we might see higher prices. Staying below could still mean another run down to retest the low at 112.29.
We should see a retrace from her but staying above 119.55. If we go below 119.55, we will go further down, possibly to 112 again.
Another option for this is a double zigzag where wave I is in fact a C and II would be an X (notice the 5 wave correction) and we are currently forming wave Y, but that depends on the 123.69 mark, it needs to hold in order for the double zigzag to be true.

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