The EURJPY has formed a Pin Bar reversal on the daily price action chart. This is a valid Pin Bar and has formed at a swing low and also at support. There are a few concerns for this Pin Bar, but if price can push price higher there is a close resistance over head which comes in around the Very Big Round Number (VBRN) of 130.300. These VBRN’s have been cropping up a lot lately. They can act as key psychology levels and that’s exactly what has happened in this market when price has hovered around the 130.00 level.
The concerns for this Pin Bar are both the bearish momentum before the Pin Bar was formed and the previous Pin Bar failing. We can see on the chart below just before this latest Pin Bar has formed price has been showing progressively stronger momentum lower, with large bearish candles closing near or just off their session lows. These large momentum candles are showing the bears are beginning to take control of this market and are a concern when looking to go long. This market tried to move higher earlier this week after forming a Pin Bar. Price did push higher momentarily before rolling over lower and that could be a sign for what is to come.
For this trend to continue higher we are going to need to see this Pin Bar send price higher and for price to again start making higher highs and higher lows. If price fails here we may be about to see the start of a fresh new short term down trend taking place to the downside.
EURJPY DAILY CHART | 14 JUNE 2013
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