FX.co ★ EUR/JPY middle term view and possible opportunity May 30, 2011

:: 4H ::

EUR/JPY was consolidation in a sideway channel ( Blue )

Price was targetting the upper limit of the channel at 117.30 but it failed to make higher highs indicating weakness of bulls and possible change in pathway

Now we have to possibilities :

1. The price would continue down breaking the lower limit of the sideway channel (2) targetting the lower limit of the newly formed channel

2. The price would go up making higher highs breaking the upper limit of the bearish channel (1) targeting the upper limit of the sideway channel

Based on the previous analysis :-

we have an opportunity to go long if the price closes above line (1) with target at 117.30

or go short if the price closes below line (2) with target at 113.10