EUR/JPY Technical Analysis
- EUR/JPY Triple Top Formation
- Selling the rallies
- Bearish trend continues below point 1
- 134.30-60 is the first target
MEGATREND MAs: Bearish
D1 Chart EUR/JPY
- Double bottom support
- Higher high
- Double top
- Intraweek target
EUR/JPY is bearish. Technicals show a clear downtrend with many attempts to break the blue line point 1 as the price is bouncing. However, today’s candle might break it lower and continuation below the point 1 should lead the price lower to intraday target -136.57 and eventually towards the intraweek target 134.31 or 132.41 depending on the ATR and momentum.
These are the reason when Yen is getting stronger:
Yen strength
1.100% risk off sentiment
2.Gold up
3.Commodities prices down
4.Equities down
5.Yen strengthens as a result
It happens because the Japs can get cheap credit, so they invest overseas heavily. When it’s risky, they bring the money back creating demand for Yen and vice versa, when its bullish Equities, they pump their money overseas, which means they sell Yen and buy foreign currency.
This analysis, and all entry signals and targets are a part of the Megatrend system and a trading course. I am maintaining the short trade on EUR/JPY with an entry at 137.32. My Telegram group received a sell EUR/JPY signal as a part of the trading method. Watching the daily time frame for this trade but it is qualified as intraday/intraweek trade.
Summary of July trading results is HERE(click to see)
Cheers and safe trading,
Nenad
