Is EURJPY finally set for a massive decline?
Updated
In recent weeks we saw the JPY reach lows we have not seen in many years. We saw EURJPY attempt to break 144.20 three times and got rejected on all attempts hence forming a potential triple top.
Triple tops are usually big bearish reversal patterns after a long-sustained move to the upside. We saw the market close as a spinning top on the daily chart which could confirm the triple top. We can also see the RSI oscillator show negative divergence, where price is held flat by resistance and yet the oscillator is trading downwards and forming lower highs.
On the intraday time frames (H1/H4) we can see that EURJPY broke a multi-week TL. We also see price is forming a potential head and shoulders pattern with 142.80 being its neckline and we can see that the market has started to breach this intraday support level. We saw a last push up to find last sellers and an immediate rejection to the downside.
If the target plays out, we could see a huge JPY recovery and see EURJPY make a run towards the potential triple top neckline around 138-139.
One for the radar
Triple tops are usually big bearish reversal patterns after a long-sustained move to the upside. We saw the market close as a spinning top on the daily chart which could confirm the triple top. We can also see the RSI oscillator show negative divergence, where price is held flat by resistance and yet the oscillator is trading downwards and forming lower highs.
On the intraday time frames (H1/H4) we can see that EURJPY broke a multi-week TL. We also see price is forming a potential head and shoulders pattern with 142.80 being its neckline and we can see that the market has started to breach this intraday support level. We saw a last push up to find last sellers and an immediate rejection to the downside.
If the target plays out, we could see a huge JPY recovery and see EURJPY make a run towards the potential triple top neckline around 138-139.
One for the radar
Trade closed: target reached
We saw Yen extend its gains and EURJPY reaching the target and closing out the trade.
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