EUR/JPY Analysis - Monday 21 December 2009

The daily analysis indicates a flat correction up to 130.78, the weekly points to a crucial reversal point at 130.71, whereas the monthly says a flat correction down to 127.02 with a bearish potential for a fall to 125.78.

So, it's a case of "up before going down".


The EJ H1 Mafia chart below confirms this scenario with EJ having bounced off WS1. So, we're looking at EJ going up to the convergence of MPP and WPP circa 130.75-131.17.


The EJ H4 chart shows that a corrective move to MPP & WPP would involve violating the downward trendline. This is no biggie in my opinion for EJ is still ranging within two major bullish and bearish trend lines. The bears case is affirmed also by the volatility pivot which sits nicely in between the MPP and WPP.


Looking forward to another great week trading!

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