Wednesday, July 13, 2011

EUR/JPY Short-Term Reversal - 13 July 2011

The EUR/JPY pair has made a temporary bottom and bounced. It will probably continue with an upside target of 113.50 where the S1 monthly pivot lies. There is a tweezer bottom on the daily chart, where two days had almost identical lows which signals a probable short term reversal.

On the hourly there is a classic double bottom, although it has not triggered yet with a rise above 111.90 necessary for confirmation. Such was the strength of the down-move, however, that the move down will probably resume after the correction finishes with the 109.60 lows targeted again.

Analysis prepared by:
Joaquin Monfort
Forex4you analyst