EUR/JPY Daily Chart (potential reversal?) - 5/17/2012

[Cyclopip]

Hey guys!

Just wanted to get your feedback on this setup that I spotted on EUR/JPY's daily chart. We've got Stochastic in DEEP oversold territory and an inverted hammer on the 102.00 handle (major area of interest in the past).

Have a look:



So what do you guys think? Is this a legit reversal in the works? Let's get a discussion goin'!

[soulreaction02]

Hi Cyclopip,

been following your threads. I also waiting to buy however mine is on the 1 hour TF, and major psychological figure (102.00). Stochastic really oversold plus i will wait for today to put on further confirmation. Friday not quite good day to trade as close of the week.

Come on up up

[Cyclopip]

Good luck, bud!

The trend on EUR/JPY is certainly down, but if one were inclined to take a "counter-trend" play, I think that 102.00 is as promising a turning point as any. It's clearly an area of interest, and I think there's a chance we could see a reversal (or at least a retracement) in this zone.

[Cyclopip]

Don't forget - the 102.00 level lines up with the bottom WATR (101.99). Not surprised that we're seeing interest here.

[soulreaction02]

yes man, i did not take the trade because when i wake up it was too late......

Anyway must wait for more confirmation.......

how long you been trading buddy???

[frankieboi84]

Hi Guys,

I think there is also a regular bullish devirgance in sight. Im a newbie, so correct if Im wrong.
On the upper chart from the lowest low to te point where the candles touch 102.00 level. Definetly a ''long'' trade to consider.

[Cyclopip]

Its testing below 102.00 now! Gotta see how today's daily candle closes. A close below 102.00 may signal more bearish moves on this pair.

[arifariif]

isn't it a divergence?

[Cyclopip]

Sure is! But EUR/JPY still trending down. Risk aversion's really boosting the yen! I wonder how long the BOJ will allow the yen to rally without intervening...