EURJPY Rises to 166 Barrier as Eurozone Inflation Surges
Updated
EUR/JPY formed a bearish engulfing candlestick pattern near the 166.7 resistance. The bull market will likely resume if buyers close above the 166.71 resistance level.
On the flip side, If bears (sellers) close and stabilize the EUR/JPY price below the 163.75 mark, a new bearish wave will likely form that could target the October 17 low at 161.9.
On the flip side, If bears (sellers) close and stabilize the EUR/JPY price below the 163.75 mark, a new bearish wave will likely form that could target the October 17 low at 161.9.
Note
FxNews—The bearish engulfing candlestick pattern came into play and blocked bulls from surpassing the 166.71 immediate resistance.
As of this writing, EUR/JPY is testing the 165.0 critical support, while technical indicators suggest the downtrend should resume.
From a technical perspective, if bears close and stabilize the price below the 165.0 support, a new bearish wave will likely emerge, which could spread to the 163.75 mark.
Order cancelled
The bearish engulfing pattern and the bearish signals from the technical indicators caused the EUR/JPY to trade sideways. The bears failed to push the price further down, so the bearish analysis should be canceled unless the EUR/JPY closes below 163.75 support.
In this scenario, a near-bearish wave will be triggered.
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