EURJPY—correcting

The remainder of my short from 109.27 was profit-stopped out at 108.20 (+107 pips).

The high so far has been 108.73. This is just above 50% of the most recent move down from 110.24 to 106.83. I wrote yesterday about price targets ranging from 108.46 (if this C leg on the three-hour chart was .618 of A), 109.46 if C equals A, and 111.09 if C is 1.618 A's length. There is fibo confluence at 108.95. My plan is to reestablish a short positon as this should prove to be good resistance up to 109. However, the pair is exhibiting good momentum at this point and price and time are fairly well in synch so I'm waiting to see some signs of weakness.

Support is a zone from 107.86 to 106.83, and 106.24 (price lows, polarity, fib confluence). Below that is 105.83 (September lows) and 103.81.

© 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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