EUR/JPY Analysis 09|19|2006 NEW YORK

NEW YORK

Pair Analyzed: EUR/JPY
Time Frame Used: 1D
Prevailing Sentiment: Neutral (sideline)
Platform: MetaTrader 4
Date of Analysis: 09/19/2006

Trade Execution Ideas:
Execute as a Real position with an entry @ N/A and absolute exit @ N/A. Targets for this trade can be configured @ T1 N/A, T2 N/A, T3 N/A. Stop loss can be configured @ N/A. Please keep in mind that stop loss configurations should be executed as money management rules suggest.

Prevailing Signals:
Tenkan-Sen/Kijun-Sen Cross Bear,Senkou Span A/B Cross Bull,Price/Kijun-Sen Cross Bear,Chikou Span/Price Cross Bull

Supporting Technicals:

Chikou Span Support Considerations:
Support Level 1: 148.70
Support Level 2: 148.45

Chikou Span Resistance Considerations:
Resistance Level 1: 148.86
Resistance Level 2: 149.17

Kumo and Price Relationship:
Price is currently Over prevailing Kumo

Kumo Strength:
Noteable Support and Resistance Considerations:
4H kumo at 149.02, though extremely weak, may provide some resistance.

News Provided By:
n/a

ZEW data out of the Eurozone came in with a significant downside surprise overnight. This combined with a wire report indicating that the market “still needs time to digest” the signal from G7 leaders that Yen strength is desirable over the long-term worked to push the pair down from a high of 150.24 to current level of 148.79.

Analyst Notes:
If you were looking for a roller coaster ride, the EUR/JPY is your ticket. This pair’s oscillations of late have been significant and abrupt, indicating loss of a defined market sentiment on the pair. Ichimoku signals are also reflecting this loss of defined trend at all timeframes. On the Daily, we have a bearish Tenkan-Sen/Kijun-Sen cross and price has crossed below the Kijun-Sen. On the bull side, the Chikou Span is still above the price curve and we are trading above the kumo. A similar mixed picture is painted on the 4H chart. If you want to daytrade this pair, there is a bit of a bearish bias on the 1H, but I am sitting this one out until further directional signals are given. I will look to a Daily close above 149.17 (Daily Kijun-Sen) to return focus to a bull scenario and a Daily close below 148.09 to bring focus to a more bearish scenario.

Chart Study

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