EUR/JPY: 1-hour
If you’re bearish on the euro, then you might like this EUR/JPY forex setup much better! A reversal from the previous uptrend seems to be looming since the pair formed a double top pattern on its 1-hour time frame. In fact, the pair seems to have already broken below the neckline of the formation around the 138.00 major psychological level, suggesting that the downtrend is already starting. If so, price could fall by an additional 100 pips, which is around the same size as the double top formation. Be careful when shorting, though, as stochastic has just reached the oversold area while the 100 SMA is moving safely above the longer-term 200 SMA, hinting that another bounce might be in order. If euro bulls take over, EUR/JPY might even form another top near the 139.00 handle.
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