SAR Still Trailing the Falling EUR/JPY Rate
We see an injection of volatility in the already heavy looking EUR/JPY pair.
The
washout in today's trading has expanded the Bollinger® bandwidth
indicator for four consecutive hours beyond the maximum width seen in a
week of trading. Moreover, the same 1hr charts show recent close prices
printing below the 50-period EMA, a bearish condition that should it
persist, would help keep the SAR indicator trailing above the price.
A
change of direction would be quickly noticed by the SAR, implying
EUR/JPY shorts are taking profit. Risks exist the volatility and the
plummeting price action extend to higher time frames.
