IN the kickstart video from earlier today, when looking at the EURUSD and the USDJPY, I outlined that the 5-minute chart would help discern an extreme.
For the EURUSD the price needs to get above its 100 bar moving average and then 200 bar MA to show that the buyers could take back some control.
For the USDJPY, the opposite was the case. More specifically, the 100 and 200-bar moving averages needed to be broken on the top side.
What happened?
For the EURUSD, the price did move lower in the early US session and in the process, retested its rising 100 bar moving average. Buyers leaned against that level and bounced the price higher. Going forward, getting below the 100 bar moving average is still needed followed by the rising 200 bar moving average.
For the USDJPY, the price needed to get above both its 100 and 200 bar moving averages on the five-minute chart as well. For it, the price did get above its 100-bar moving average and pushed higher. However, the momentum to the upside stalled near its falling 200 bar MA and rotated lower.. The price needs to get and stay below the 100 bar moving average now at 142.59 and then the lows for the day.
This article was written by Greg Michalowski at www.forexlive.com. Source