EUR/JPY forming a nice reversal pattern, remain bearish

The price reversed nicely yesterday and is dropping nicely. We prepare to sell below resistance at 130.07 (Fibonacci retracement, horizontal overlap resistance, bearish price action, bearish divergence) for a push down to at least 128.92 support (Fibonacci retracement, horizontal swing low support).

Stochastic (34,5,3) is seeing a nice reversal below 94% and has bearish divergence vs price signaling that a strong reversal is fast approaching.

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 130.42. Take profit is at 128.92.


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