Forex4you Technical Analysis 20 April 2011

EUR/JPY: technical analysis
The EUR/JPY has fallen quite sharply to an old trendline linking the Jan and March lows. From there is has bounced back up to its current position in the 119s. The correction looks like an Elliot wave 4 with the bounce a possible wave B. B has reached the down trendline from the 11 March highs and the point and figure charts have almost achieved their upside counts. This may indicate the end of B is nearing although the monthly pivot at 121.43 is a possible endpoint too. Eventually C should come down, but it could be weaker than A as a result of alternation, and meander to the top of the neckline of the inverted H&S at around 116.50. From there wave 5 could begin to rally, eventually reaching the point and figure target on the 0.5 x 3 chart at 126.50 or even the speed resistance line in the low 130s.



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Analysis by: Joaquin Monfort
Forex4you analyst

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