The EURJPY pair has recently broken a significant resistance level and is currently retracing back to it, which could signal a potential trend reversal.
A head and shoulders pattern has formed on the chart.
The neckline of the pattern (146.400) is a key level to watch, as a break below it would confirm the pattern and potentially trigger further selling pressure.
The MACD and RSI indicators are also showing signs of bearish divergence, which supports the idea of a potential short trade.
The target for this trade is 145.200 the previously broken resistance level, which could act as a support level and potentially provide a bounce for the price.
A break above the right shoulder will invalidate the bearish bias.
It is important to note that all trading decisions should be made in accordance with one's own risk management strategy and analysis of the overall market conditions.
A head and shoulders pattern has formed on the chart.
The neckline of the pattern (146.400) is a key level to watch, as a break below it would confirm the pattern and potentially trigger further selling pressure.
The MACD and RSI indicators are also showing signs of bearish divergence, which supports the idea of a potential short trade.
The target for this trade is 145.200 the previously broken resistance level, which could act as a support level and potentially provide a bounce for the price.
A break above the right shoulder will invalidate the bearish bias.
It is important to note that all trading decisions should be made in accordance with one's own risk management strategy and analysis of the overall market conditions.