EURJPY March 11

EURJPY was one pair at least that did not follow suit with the Tsunami / Earthquake news and cause a huge demand for Yen, we actually saw JPY push EUR down today before much of the other moves happened and keep it near 113.50 levels which is a weekly pivot as well, so no tremendous volume on this toward the downside like on the other Yen crosses.

In this chart I point out a great spot not only where price action gets us in, this candle stick set up engulfing bear candle strong rejection of 115.03 and a 200 pip move down to 112.75 before bouncing back another 100 pips to 113.70 where it is today.  Many new traders see this in pip value, I see this in percentages and overall value, EURJPY lost almost 3% of its value today before giving back another 1% (if we’re dealing with 115Euro per 1JPY, then 115 down to 112 in one day is significant and telling about the future for EURO not the Yen necessarily.

Im going to keep my eye on the debt woes out of the Eurozone next week.

Forex Chart EURJPY January 19, 2009

Today I was looking at EURJPY 30 Minute chart in Meta Trader.  I always tend to keep these 30min charts open but look at 2 Minute charts for exact entry.

The Rainbow MMA Crossover system has you focus on 5Minute charts, but on higher time frames, the signal is much more accurate.  Here on January 19, EURJPY ended its corrective up move and began to drift downwards.  Once the yellow rainbows flipped over the red, the trend changed directions and resulted in a 400 pip move downward.