EURJPY → Resistance retest in a false-break format

May 11, 2023

EURJPY is testing the resistance of the ascending channel in a false-break format. A reversal pattern in the form of H&S pattern is gradually forming. What's next?



The price is not ready to break the trend resistance and it shows the precondition for a possible correction.
A reversal pattern "Head & Shoulders" is forming and the price is trying to break the support, 147.4, a few hours ago.
There is a key liquidity area at 147.6 and the price might try to test it. If the bears hold the area, there will be a consolidation below this area, followed by a price decline to the uptrend support area.

Strong resistance: 147.6, 147.9
Strong support: 146.4, 145.6
At the moment, as the H&S pattern is active, there is a big chance for the price to go down. If the level of 147.6 is not broken, the fall to the area of 145.000 will start to form.

Regard, R. Linda!

May 11, 2023

Note

USA - Initial Jobless Claims = 264k (Forecast 245k / previous 242k)

US - PPI Prominflation (Apr)
m/m = +0.2% (previous -0.5%)

This data looks bad for the dollar, so we expect the dollar to decline

May 14, 2023

Trade active