EUR/JPY technical analysis
Looks like a rooftop pattern.
The break below the trendline is bearish.
New lower low should come into play.
1. Order block zone.
2. Rally High.
3. Break below the trendline.
4. Target 1.
5. Target 2.
The price is in a downtrend. Seems like we are in risk-off mode. During the 100% risk-off sentiment:
1. Gold up.
2. Commodities prices down.
3. Equities down.
4. Yen strengthens as a result.
This happens because the Japs can get cheap credit, so they invest overseas heavily. When it's risky, they bring the money back creating demand for the Yen and vice versa, when it's bullish Equities, they pump their money overseas, which means they sell Yen and buy foreign currency. At this point, Yen is getting stronger. The expectation is that the pair should be moving towards 131.37 and 130.66 respectively.