Euro Yen Forex Currency Pair Analysis

It is not exactly news to anyone that is involved in the markets the stratospheric heights to which the Japanese Yen has risen. The trend is absolutely relentless, but in the last week a long overdue retracement appeared and gave the Yen some relief. Today after doing my chart scans I noticed a very cool looking price action on the GBP/JPY and the EUR/JPY forex pairs. Both pairs are very highly correlated and if there is a signal on one pair usually there will be something very similar on the other. Sometimes you can use one as a proxy for the other. I have posted two charts bellow so you can see how evident these correlations are. I am a big believer and fan of rejection bars and today we have some very nice formations. If you notice the four hour charts for both pair are showing very large pin-bars. Not only that, but my favorite RSI divergence is showing very clearly between the swing highs. The GBP/JPY formations is larger and more prominent. A very clear rejection at a very nice price pivot zone. Remember confirmation of bearish momentum is only valid if the low of the candle formation is broken through. Have Fun!