By Greg Holden – The euro has been falling since Friday against most of its currency counterparts, but few traders are concerned since many indicators are pointing toward an impending correction. As can be seen below, the EUR/JPY has reached the lower border of a steady bullish channel and many of the corresponding indicators appear to be anticipating a bullish correction over the remainder of the day.
– The chart below is the EUR/JPY 4-hour chart provided by ForexYard. The indicators used are the Stochastic (slow) and Williams Percent Range.
– Point 1: on the chart below you can see the bullish channel lines drawn in red. The price has recently fallen to touch the lower border of this channel and may experience a technical correction.
– Point 2: the Stochastic (slow) on this chart appears to be providing us with a fresh bullish cross, indicating that the next major movement may be in an upward direction.
– Point 3: the Williams Percent Range has the price indicator far below the -80 mark, indicating the price is over-sold and should see some upward pressure.
EUR/JPY – 4-Hour Chart
Forex Market Analysis provided by Forex Yard.
© 2006 by FxYard Ltd
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