Saturday, June 23, 2007

very interesting picture here on Daily EURJPY - some points that I observe:

1. the bigger formation (blue lines) implies a Rising Wedge - which usually leads to reversal , at least in the book examples

2. the recent consolidation (within the red lines) has a breakout around 165.05/15 where Resistance immediately turned into Support..

3. most interesting though is the Orange line which comes from the Jan - Feb Highs - it is like a central line of rotation within the recent consolidation -- I think a Central Pivot would be more appropriate to name it..

>> so if the consolidation was within an approximate 400 pips range - then a breakout at 165 would target 169 figure in EURJPY..

Thursday, June 21, 2007

Daily channel - now the bigger picture with channel top around 125..

the slope of the channel is close to 45 degrees - which in books is qouted as a measure for sustainable trend.

Daily USDJPY channel

we can see the USDJPY has touched the channel top but there is still space left for a test around 124.10 before we see a retracement...