EURJPY—potential short coming up

On the three-hour chart of EURJPY, you can see it nearing its previous high of 125.25 that proved too difficult a resistance level on Feb. 21. It's high this morning, so far, has been 124.66. I think it will make that level and it's a good potential short depending on price action at that time. A clue that it will falter again is to watch an indicator such as RSI on the hourly chart. If it falls out of overbought, a short would be in order. If it does clear 125.25, it's fairly clear sailing up to 126.39. If it doesn't clear it and falls back, support is at 123.03, 122.59, 121.89, and 121.47. Either way, 125/125.25 is a level to watch.

Here's the three-hour 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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