Forex: EUR/JPY under surveillance for "sell"

EUR/JPY

Time frame: H4

Technical Analysis: The chart shows that the price is moving in a downward trend channel. As the pair reached the support of the channel, it slowly but gloriously headed north. Two Fibonacci levels were designed on the chart, with the price reaching resistance at 61.8 (126.68-123.65) and 50% (127.50-123.65). If the price breaks through these resistance levels, the next level of resistance is at 61% Fibonacci at a price of 126.00 where sales will be more likely.

Indicators: For the moment, the price is below 200 SMA, which fits with 61.8 and 50 at Fibonacci and plays a role of strong resistance.

The price is over 50 SMA, and it plays a supporting role.

DeM - On the way to reach over bought values ​​which supports the "sell" scenario.

Entering a deal: There are two options.

Option 1: If the price fails to break the resistance at level 125.60, we can position "sell".

Option 2: If the price breaks the resistance at 125.60, then it will continue to rise to the next strong resistance level of 126.00. When the price reaches this level, we can position "sell".

SL: 126.30

Alternative scenario: If the price could break the last level of resistance at Fibonachi 61%, then it will continue to rise to 126.80.

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