Market update, Trade ideas: EURJPY Technicals have turned bearish
We take notice of new important developments on the EURJPY pair which are pointing in the bearish direction.
With the close of the last week these technical indicators have shifted to the bearish side:
- Big bearish engulfing candlestick pattern on the weekly chart (engulfs previous 4 weekly candles).
- Broke below the 50-day and the 100-day moving averages. The 100-day moving average has supported the uptrend in EURJPY since the aftermath of last year's French election (April 2017).
- Broke the 6-7 months ascending channel to the downside (shown on the chart)
All in all, with recent developments on the charts, it seems that the path of least resistance for EURJPY is down. This means that the pair will likely reach the 130.00 area over the coming days and weeks.
See the chart below for why this area is important support.