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Apr 29, 2016 12:43 PM

EUR/JPY - Falling tops on price, Rising bottoms on RSI 

Euro Fx/Japanese YenFXCM

Description

Resistance - 123.36, 124.40, 125.00

Support - 121.60-121.50, 120.00, 119.11

  • Price chart shows falling top formation remains in place, still, despite sharp BOJ-led sell-off in the cross, the rising bottom formation on the daily RSI is intact.

  • Hence, odds of a recovery to 123.36 are high next week, unless the cross sees a daily close below 121.60-121.50 on the daily chart. which will mark a failure of bullish price-RSI divergence.

  • In such a case, the sell-off may gather pace , courtesy of which support at 120.00-119.11 could be put to test

Comments
Mizuki32
Totally agree. Lowest trendline is still valid and RSI divergence occurs.
As long as the price is above the line, shorting EURJPY is too dangerous.
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