Forex Technical Analysis EURJPY | Our expectations:
Two lower tops suggest a likely fall in the uptrend and the beginning of a correction or downward tendecy. The price is suitable for taking short positions with a stop at levels 131.65.
Testing and keeping the price under strong horizontal resistance at 131.15 levels - negative sentiment.
Price below 50SMA, which is below 200SMA - negative signal.
A pin bar with a long shadow overhang and a correction of over 50% of the bar give a good opportunity for a positive risk / reward expectation.
DeM (14) below 0.7 with unreliable upward rotation creates a prerequisite for a new downward impulse.
Alternative scenario: Break above 50SMA is likely to lead to a test of the diagonal resistance where we can look for short positions again. Breakthrough over the diagonal resistance and 200SMA will cancel the negative scenario, and probably the bulls will again be in possession.
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