EURJPY

Still no spike up and on the daily chart, the support line that underpinned the 3rd wave in the wedge is probably broken, with price making its way to the bottom of the triangle at 130.50-130.75. The next 45degree pyrapoint line down is at 131.1485 (calc'd off the July 2012 low), so a cluster of supports there to help price find its footings. The momentum studies are not oversold as of yet although they tend to roll around in diagonals, so not too helpful at present.

We are however, oversold on the 60min chart but only into a falling moving average line and quite some ways below the daily pivot, whilst inside the regression channel from the top. Also, wary of the light blue FLD coming into view very soon: this is the FLD of the moving average line of the daily pivot. Failure there could set up a strong drop equal to the distance it took to arrive at the line. So, any spike out of that proposed diagonal needs to cover some ground to secure any bullish prospects and get the 5th leg of the wedge into play. So best to assume if it does not look like a trend change, it is not. For now, no buy signal in play and my current longs will be covered under 131.39.