EUR/JPY 4H Chart 10:15AM EDT 6/11/2012
The EUR/JPY has been in a corrective rally since the start of June. The 4H chart shows a correction that is held just under 101.00. This time-frame also shows a bearish divergence as the higher price high is matched with a lower RSI high.
Now it will be important to see if this bearish divergence will be followed through with a break below a rising trendline. If not, there is still upside back toward 101 and maybe a little higher to test a declining trendline that goes back to the April high near 111.10.
The 1H chart shows that the market has “filled the gap” that started the week. The RSI tagged 70, and if it can stay above 40, we still have bullish momentum. With the market also staying above the rising trendline, another bullish swing in the short-term can be anticipated toward 101.
EUR/JPY 1H Chart 10:18AM EDT 6/11/2012
Fan Yang CMT is a trader, educator and a Chief Technical Strategist for FXTimes – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
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