09.06.201115:57 Forex Analysis & Reviews: EUR/JPY Two possible scenarios and trade opportunity June 9, 2011

Long-term review

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EUR/JPY currency pair has been consolidating inside bullish channel since 23 May .

As we follow the price action towards the upper limit of red channel we see strong rejection of the level 117.70 which has proved itself as a strong resistance level till now .

Also we notice that the price started to make lower lows and lower highs indicating weakness of the upside direction .

Based on the previous analysis :

4H candlestick closure below the lower limit of the channel (BLUE ONE) gives the signal to go SHORT with target at 115.05

4h candlestick closure above the upper limit of the channel ( RED ONE ) gives the signal to go LONG which isn't recommended as we see .

SL for both positions is the achievement of the opposite one .

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