EUR/JPY - Speculating on Future Direction Using RSI Reversals
January offered a picture perfect example of how to use Cardwell's RSI reversals to determine price targets. A negative reversal provided us with a 140.29 target which was only a couple pips below January 20th low of 140.32, and was triggered nonetheless a week later.
Now, the reverse situation may be occuring with positive reversal stemming out of today's fall to 139.2 yielding a target of 141.41. If the current upward channel is respected, we can even attach a time target of January 26th.
Although RSI is also showing bearish divergence, bullish divergence in January tells us that we can still see one or two more legs higher before a reversal.
This scenario is alive so long as C is not broken on the RSI line.
Now, the reverse situation may be occuring with positive reversal stemming out of today's fall to 139.2 yielding a target of 141.41. If the current upward channel is respected, we can even attach a time target of January 26th.
Although RSI is also showing bearish divergence, bullish divergence in January tells us that we can still see one or two more legs higher before a reversal.
This scenario is alive so long as C is not broken on the RSI line.