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Following up on the EUR/JPY Trade Idea

On Monday, we saw the EUR/JPY rally, which gave us an idea to fade it into the prevailing trend:

Today, we are seeing the bearish scenario unfold. The 4H chart shows the EUR/JPY falling from this week's high around 138.45 back toward last week's lows around 137.50. The downswing is confirming further bearish outlook:
EUR/JPY 4H Chart 7/16

- July's falling trendline held up
- The broken rising support from June can be considered as resistance now
- The moving averages in the 4H chart are now in bearish alignment, and are starting to spread while price trades under them. This is a very strong indication that a bearish trend is starting again after a period of consolidation.

The daily chart shares some of the bearish signs given in the 4H chart based on price and moving averages. The RSI also stalled under 60, which shows that the prevailing bearish momentum is maintained in both the daily and 4H charts. 

EUR/JPY Daily Chart 7/16

The alignment of bearish signs in the 4H and daily chart suggests we might have another leg below last week's low of 137.50. The RSI in the daily chart is still above 30, and shows that there is still room to fall before the technical analysts see oversold momentum in the daily chart. 

The next target could be the 2014-low at 136.22.