EUR/JPY outlook: Completion of failure swing pattern to signal deeper pullback
|EUR/JPY
EURJPY remains in red and holding near three-week low on Friday, on track for the first weekly loss in five week and the biggest drop since the second week of March.
Initial signal of larger rally stall was also generated by November’s monthly Doji with long upper shadow and overbought conditions on monthly chart.
Daily studies already turned bearish as 14-d momentum moved into negative territory and double bear-cross (5/20 and 10/20DMA) formed on daily chart.
However, fresh bears still look for confirmation of failure swing pattern on daily chart, as pullback faced headwinds on approach to pivotal Fibo support at 160.51 (38.2% of 154.38/164.30 bull-leg) which resulted in a second daily Doji candle, signaling indecision.
Firm break of 160.51 to confirm bearish near-term stance for extension through 160 (psychological) towards 159.34 (50% retracement of 154.38/164.30).
Daily Tenkan-sen (162.15) marks upper pivot and break higher would sideline near-term bears.
Res: 161.96; 162.15; 162.44; 162.88.
Sup: 161.00; 160.51; 160.00; 159.61.
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