Tuesday, April 28, 2009

Daily Outlook for EURJPY


Attached is the 1H chart of EURJPY which again shows a beautiful setup which could have been taken in the morning of today. As you can, there was a period of 6-7 hrs which had very small bars but none of those bars broke the support at 126.56. The high during that period was 126.85. So, during any of those hours, if we had taken a long with a SL below 126.55, then that trade would have been worth atleast 70 pips.

The short bars show either accumulation or distribution taking place and there was going to be an impending breakout. Anyway, EURJPY seems very strong now and it has broken its resistance at 127.3 and looks good for more. There would be some correction / retracement as the London session approaches and the upside target would be 128.

On the downside, there should be very strong support at 126.55 and then at 125.8.

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