EURJPY is approaching resistance, potential drop!

Apr 9, 2018

EURJPY is approaching our first resistance at 131.62 (horizontal swing high resistance) which coincides with our short term descending resistance line. A strong reaction might occur below this level, pushing price down to our major support at 130.84 (horizontal pullback support, 50% Fibonacci retracement, 61.8% Fibonacci extension) which coincides with our short term ascending support line. A breakout of our intermediate support level at 131.09 (horizontal swing low support, 38.2% Fibonacci retracement) might provide the bearish acceleration to our major support level.

Stochastic (55,5,3) is also reacting off our major resistance level along with a bearish divergence being seen, which might be a good precursor for a potential drop in price.

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