On last week's analysis, we noted that a head and shoulders pattern has formed on the EURJPY Chart, which would ultimately push the price to the downside.
Price did do exactly what our analysis predicted and pushed for lower lows. However, it bounced back on the 200EMA and is now retesting the new resistance formed by the head and shoulders pattern.
A bearish pennant has hence surfaced and price is likely to get rejected by the pennant resistance and push for lower lows until it reaches the previously formed support lines marked by the yellow rectangles.
I'd probably take a short position on a lower timeframe in this case when I get confirmation of a breakout to the downside.
Thank you for reading and happy trading!
Disclaimer:
I am not a professional trader, financial/investment advisor, broker and/or dealer. The idea above is strictly based on my opinion and should only be used for entertainment/educational purposes only. Do conduct your own due diligence and do not act solely based on any information conveyed in this Trade Idea.
Price did do exactly what our analysis predicted and pushed for lower lows. However, it bounced back on the 200EMA and is now retesting the new resistance formed by the head and shoulders pattern.
A bearish pennant has hence surfaced and price is likely to get rejected by the pennant resistance and push for lower lows until it reaches the previously formed support lines marked by the yellow rectangles.
I'd probably take a short position on a lower timeframe in this case when I get confirmation of a breakout to the downside.
Thank you for reading and happy trading!
Disclaimer:
I am not a professional trader, financial/investment advisor, broker and/or dealer. The idea above is strictly based on my opinion and should only be used for entertainment/educational purposes only. Do conduct your own due diligence and do not act solely based on any information conveyed in this Trade Idea.