EUR/JPY - Bearish
Updated
Monthly
After a long bullish climb from mid 2016, price has finally reacted at 136.00 and could potentially turn around to the downside. In February, we saw a strong bearish engulfing which took out 6 months of prior bullish price action. We also closed below our 8 EMA.
Weekly
After a few weeks of bearish activity, last week we saw price pullback to test 132.00 - this failed and EMAs have crossed to the downside indicating potential oncoming bearish momentum. This week, we have formed a log pin rejecting our 8 EMA indicating further downside momentum.
Daily
New lows were made at 130.00 support and price has rejected 131.400 as a daily area of resistance. We also saw an evening star formation last week which again indicates a reversal to the downside. After this formation, we saw another test of 132.00 but have failed again with a daily closure back below our red EMA.
H4
Lower highs and lower lows support our downward bias. Price has pulled back into our preferred fib region which is confluent with monthly resistance at 132.00. We can see long wicks to the upside indicating selling pressure. A final attempt was made to breach 132.00 but we have failed. Our CTL has been broken and EMAs are now crossed to the downside in alignment with the daily and weekly time frames. A strong bearish candle has also closed below our key daily area of 131.40.
After a long bullish climb from mid 2016, price has finally reacted at 136.00 and could potentially turn around to the downside. In February, we saw a strong bearish engulfing which took out 6 months of prior bullish price action. We also closed below our 8 EMA.
Weekly
After a few weeks of bearish activity, last week we saw price pullback to test 132.00 - this failed and EMAs have crossed to the downside indicating potential oncoming bearish momentum. This week, we have formed a log pin rejecting our 8 EMA indicating further downside momentum.
Daily
New lows were made at 130.00 support and price has rejected 131.400 as a daily area of resistance. We also saw an evening star formation last week which again indicates a reversal to the downside. After this formation, we saw another test of 132.00 but have failed again with a daily closure back below our red EMA.
H4
Lower highs and lower lows support our downward bias. Price has pulled back into our preferred fib region which is confluent with monthly resistance at 132.00. We can see long wicks to the upside indicating selling pressure. A final attempt was made to breach 132.00 but we have failed. Our CTL has been broken and EMAs are now crossed to the downside in alignment with the daily and weekly time frames. A strong bearish candle has also closed below our key daily area of 131.40.
Note
Stop moved to BE.
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