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

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’!

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

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.

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

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???

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.

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.

isn’t it a divergence? :slight_smile:

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…