EURJPY – Large triangle formation offers a downward bias
|Monthly: Posted a bearish Outside Month in March. This pattern often highlights the top of a trend and the start of a new downward bias. For the last 9months we have seen mixed results with levels close to the March Marabuzo of 132.79 (mid-point from open and close) finding sellers. November posted an Inside Harami Candle, a clear sign of investor indecision.
Weekly: Holds within an Expanding Wedge formation. This pattern has an eventual bias to break to the downside. Trend line support is currently located at 125.96. The measured moved target is the start of the wedge at 109.20. To the upside, 132.00 to 134.00 is a previous congestion zone.
Daily: Mixed trading for the last 42 (trading) days has resulted in a large symmetrical triangle being posted on the daily chart. This formation has a bias to break to the downside. The measured move target is 124.13. With Non-Farm Payroll figures to be released later today, we could see the impulse beak to the downside needed to trigger to lower sentiment.
We look to sell a break of 127.67
Stop: 128.27
Targets: 126.00 and 124.20
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