EUR/JPY forming a nice reversal pattern, remain bearish

The price is approaching major resistance at 130.07 (Fibonacci retracement, Fibonacci extension, bearish divergence) and we expect to see a strong reaction off this level for a drop to at least 128.92 support (Fibonacci retracement, horizontal swing low support).

Stochastic (34,5,3) is seeing major resistance below 94% and also sees bearish divergence vs price signaling that a reversal is impending.

Correlation analysis: We're seeing JPY strength with drops on AUD/JPY, EUR/JPY, and USD/JPY.

Sell below 130.07. Stop loss is at 130.35. Take profit is at 128.92.


The material has been provided by InstaForex Company -