EUR/JPY - Why the decline in EUR/JPY should not have been a surprise.

EUR/JPY - Why the decline in EUR/JPY should not have been a surprise.

 

This cross has traded in an ever more narrow range over the last few weeks and I was about to loose my patience. When that happens it often pays to look at something through a different pair of glasses. On May 8 I showed the above chart to my subscribers and wrote:

 

EUR/JPY - A powerful move will be seen soon

 

EUR/JPY the Bollinger Bands indicates a powerful move soon.

When the Bollinger Bands narrows (The Bollinger Band Squeeze) as we have seen it lately in this cross, it indicates that a powerful move will be seen soon. I'm still looking for a move towards the downside as the most likely outcome. That said I'm sure that it pays to follow which ever way it breaks. I will keep a close eye on this cross for clues. 

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Category: EUR/JPY

Published on Thursday, 08 May 2014 11:20

Written by Elliott Wave Surfer

 



 Already the next day on May 9 we had seen the first break, a daily close below the lower Bollinger band, indicating more downside pressure to come. The downside break also fitted nicely to my Elliott Wave Count from the 145.69 top. On May 9 I did this follow-up, to my post from the day before:

EUR/JPY Bollinger Band follow-up from yesterday

We saw a close below the lower (red) Bollinger Band yesterday, this was the trigger we where looking for and we should see the downside pressure mounting from here. I will be looking for a decline towards 137.00 and possible even lower towards 133.52  and 126.00 longer term. Before this correction from 145.69 finally comes to an end.

The critical level is now at 142.36 (yesterdays spike high).

EUR/JPY - Bollinger Band follow-up 

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Category: EUR/JPY

Published on Friday, 09 May 2014 10:57

Written by Elliott Wave Surfer

 

As I'm writing this today Saturday May 10, I can see that EUR/JPY closed Friday at 140.09. If you took the trade from the Thursday close at 140.50 you would already have a nice profit and the expectancy of much more to come.

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