EUR/JPY in 2nd Correction Swing
- 4H: The EUR/JPY chart in the 4H time-frame shows near-term correction mode. The market is in a second rally swing after declining from 109.50.
- If the 2nd swing is a 100% of the first, the market should see resistance near 107.25 (38.2% retracement).
- The RSI in the 4H chart should stay below 60 or the market is more likely ranging or turned bullish in the short-term.
- If the market can establish this as simply a correction, it can go to 1.04.
- 15-min: The 15-minute chart shows the RSI breaking above 60 and the market breaking above declining trendline.
- This confirms the near-term bullish mode towards at least the 1.0725/1.0750 area.
- For the bearish mode to return, the 15min RSI must first dip below 40, and even below 30. Then a confirmation is the RSI failing to break above 60.
