EURJPY | Perspective for the new weekAs the bulls are trying to break up the resistance level of Y126.620, price is caught in Double Top situation where a reversal is possible in the coming week(s).
Tendency: Downtrend ( Bearish )
Structure: Double Top | Supply & Demand
Observation: i. Since the beginning of the month, buyers have found it difficult to push the price beyond Y126.620 with a second attempt culminating with a sharp rejection of this level on Friday.
ii. Price is presently within a significant zone (Y126.500 & Y127.000) - a Key level from the perspective of our weekly chart.
iii. Double Top: The appearance of an extremely bearish technical reversal pattern forming after price reached Y126.600 two consecutive times with a moderate decline between the two highs is a harbinger to Sell for me!
iv. However, it is important to note here that I shall be looking out for a Breakdown of the Y126.00 level for sell confirmation in the coming week.
v. This been said, a Breakout of level Y127.000 with significant candles will disregard this bias and a shift in perspective for a rally will emerge.
Trading plan: SEL confirmation with a minimum potential profit of 150 pips.
Risk/Reward: 1:3
Potential Duration: 4 to 10 days
NB: This speculation can be considered to make decisions on lower timeframes.
Watch this space for updates as price action is been monitored.
Risk Disclaimer:
Margin trading in the foreign exchange market (including foreign exchange trading, CFDs, etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.
