[famcltd]

The beauty of technical analysis - when it works and when you can sincerely take advantage of it - lies in its
catalogue of patterns. Bearish, bullish, sideways patterns, there is an armada of patterns out there supposed to help
the market technicians to spot what will be the next move (who said anticipate?). When I say "supposed", I don't mean "guaranteed" ... unfortunately.

Following this long introductive epitaph about technical analysis patterns, let's see what EURJPY price is telling us using the armada of patterns technicians discovered last decades. Well, price is trapped from 2009 inside a wedge pattern. "Trapped" is may be not the right word to use here, as EURJPY's price has been driven by all market participants, but let's stop the philosophical point of view and let's try to predict next move on EURJPY based on this pattern. It is worth mentioning about which pattern we are talking about. A bullish one? A bearish one? A sideways one?

The answer is a falling wedge! A wedge pattern warns that price will reverse - in this particular case a very longterm alarm that started back in 2009 and still counting as we are waiting for the alarm to ... ring. Next move on EURJPY should visit the 107/110 region, with 105.60 being the first obstacle. However, current Dow Theory cycle is bearish - represented by the H and L on the above chart. The short-term cycle remains bearish and as long as price (a) stay in the downside red channel (b) does not break current Dow Theory cycle, EURJPY shall score new lows later in 2012. This falling wedge will act positively on this pair later on, but for now we need a break of Dow Theory pivot (111.60) to change team - from bears to bulls.

In other words, even though we favor a rally as high as 107/110 region, EURJPY's downtrend should then resume.

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FAMCLTD

[Bbarbara]

EUR/JPY mine is here
Bought at 106.07
Sold at 106.26
Profit 19 pips

[bonus123]

Sell at 108.32
Take profit* at 107.82
Stop loss at 108.62

[bonus123]

Despite dripping to 105.64, EUR/JPY drew strong support from mentioned 38.2% retracement of 99.24 to 109.83 at 105.78 as expected. Pull back from 109.83 might have finished and initial bias is mildly on the upside for 109.83 first. Break will confirm rally resumption for 111.57 resistance next. Again, fall from 123.31 has likely finished on bullish convergence condition in daily MACD.

[bonus123]

Daily here: EUR/JPY's pull back from 109.83 has likely completed at 105.64 after drawing support from mentioned 38.2% retracement of 99.24 to 109.83 at 105.78. Intraday bias remains mildly on the upside for 109.83 resistance. Break will confirm resumption of rally from 97.03.