EURJPY—weak

My short from 115.30 profit-stopped out at a spike to 114.99 in the beginning of Sunday's trading for +31 pips. Or maybe my broker was just running stops. Regardless, the question is whether I get back in. I most likely will. I'd like an entry point above 115 but this may not happen. I still believe the pair is going to break down. The small candles on the weekly chart show weakness or, at best, indecision. It's also interesting that even with the recent rally, RSI can't get above 50. This looks bearish. If the pair doesn't reach 114.74 or 115 then I'll probably sell based on shorter term charts but I hope I can at least get in at 114.50.

Should the pair rally sharply and break above last week's high of 115.67, there's potential for a move into the 116 area and possibly 119.65 which would be very strong resistance.

Here's the weekly chart.










© Dianne Fecteau, 2010. No part of this material may be reproduced in any form, or referred to in any other publication, without the express written permission of the author.

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