Just like EUR/USD we can see an M-Top candle pattern has formed just below key resistance of WR1 on EUR/JPY.
The neckline at 162.11 has been broken so I'm in SHOT on this pair.
The pair fell just short of reaching key WR1 Pivot which is a concern so my STOP on this trade is above this level just in case we see some late buying in an attempt to hit WR1.
The double top at 162.36 area was last reached some tine ago, in November and a look at the H4 RSI shows us that we've just left an area of overbought so there are signs that this move south has the potential to be deep.
Price has cleared the 25 EMA on H1 and is curerntly sitting on the 50 EMA.
The key 100 and 200 EMA levels lie below the price so if this is to be a deep retrace then the BEARS have their work cut out.
Initially my target for this trade is the 200 EMA which lies on top of WPP Pivot which it frequently does.
We'd have to see how much BEARISH momentum is in the market to see whether this key level at 161.43 is likely to break.
If it does then we could be headed to 159.00 but that wouldn't be for some considerabe time.
We also have FOMC minutes at 19:00 GNT which will be a market mover.
The neckline at 162.11 has been broken so I'm in SHOT on this pair.
The pair fell just short of reaching key WR1 Pivot which is a concern so my STOP on this trade is above this level just in case we see some late buying in an attempt to hit WR1.
The double top at 162.36 area was last reached some tine ago, in November and a look at the H4 RSI shows us that we've just left an area of overbought so there are signs that this move south has the potential to be deep.
Price has cleared the 25 EMA on H1 and is curerntly sitting on the 50 EMA.
The key 100 and 200 EMA levels lie below the price so if this is to be a deep retrace then the BEARS have their work cut out.
Initially my target for this trade is the 200 EMA which lies on top of WPP Pivot which it frequently does.
We'd have to see how much BEARISH momentum is in the market to see whether this key level at 161.43 is likely to break.
If it does then we could be headed to 159.00 but that wouldn't be for some considerabe time.
We also have FOMC minutes at 19:00 GNT which will be a market mover.