EURJPY
The rate has tested the former broken 4-month long rising trendline as the new resistance and experienced a sharp drop lower.
The test level is also important because of the major resistance zone (yellow rectangle) and the higher parallel of the potential falling channel formation (needs the 3rd infliction point to confirm the upper boundary) (the pink channel).
I am looking for a break below the short term rising trendline to enter new short positions.
A break above 121.30 (which would then become a neckline) would trigger an inverse head and shoulders formation with the first target around 122.50.
