EUR/JPY | Bearish H&S | Structural Continuation- Bearish Bias |
The EUR/JPY's recent rally appears to be coming to an end, with a wedge on the 4-hour chart beginning to give way to the downside. Wedge patterns that rise during a downturn indicate that investors are losing confidence and serve as corrective patterns. In order to position their stop sufficiently above the previous week's high of 13056, shorts should aim for the most recent swing-low of 12859 and the 200-day moving average, which is confluent at 12862. With a current price of a little more than 130.00, this could result in a significantly skewed risk/reward ratio for the investor in question. At support, traders may wish to take profits, or at the very least partial profits, and employ the trailing stop method if momentum appears to be pushing the market towards a new swing-low beneath support.
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