SAR Still Trailing the Falling EUR/JPY Rate

SAR Still Trailing the Falling EUR/JPY Rate

9 June 2016, 19:28
Roberto Jacobs
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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.


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