Sell EURJPY Channel Breakout

The EUR/JPY pair on the M30 timeframe presents a potential selling opportunity due to a recent downward breakout from a bullish channel pattern. This suggests a shift in momentum towards the downside and a higher likelihood of further declines in the coming minutes or hours.

Key Points:

Sell Entry: Consider entering a short position around the current price of 162.85, positioned close to the breakout level. This offers an entry point near the perceived shift in momentum.

Target Levels: Initial bearish targets lie at the previous support levels within the channel, now acting as potential resistance zones: 162.04 and 161.54. Further downside targets could be determined using other technical analysis methods like Fibonacci retracements or extensions.

Stop-Loss: To manage risk, place a stop-loss order above the broken channel support line at 163.35. This helps limit potential losses if the price reverses and breaks back upwards.

Thank you

Trade active:

Weak Eurozone Data: Flash Eurozone PMI data released yesterday showed a slight contraction in manufacturing and service activity, potentially raising concerns about Eurozone economic growth.

Hawkish BoJ Minutes: The Bank of Japan (BoJ) released meeting minutes yesterday suggesting a potential shift towards a less dovish monetary policy stance, potentially supporting the JPY.