The EUR/JPY pair crashed in the last hours and now is trading at 141.39 at the time of writing. After dropping below the uptrend line, the rate signaled exhausted buyers. Fundamentally, the price increased a little yesterday as the Eurozone Flash Services PMI and German Flash Services PMI came in better than expected. Today, the German ifo Business Climate came in line with expectations.
Technically, failing to stay above the median line (ml) of the ascending pitchfork signaled that the leg higher could be over. It has retested this dynamic resistance and now it has found strong supply right above the weekly R1 (142.22). A new lower low activates a deeper drop.
Join Learn 2 Trade VIP Group now!
Information on the Learn2.trade website and inside our Telegram Group is intended for educational purposes and is not to be construed as investment advice. Trading the financial markets carries a high level of risk and may not be suitable for all investors. Before trading, you should carefully consider your investment objectives, experience, and risk appetite. Only trade with money you are prepared to lose. Like any investment, there is a possibility that you could sustain losses of some or all of your investment whilst trading. You should seek independent advice before trading if you have any doubts. Past performance in the markets is not a reliable indicator of future performance. Learn2.trade takes no responsibility for loss incurred as a result of the content provided inside our Telegram Groups. By signing up as a member you acknowledge that we are not providing financial advice and that you are making the decision on the trades you place in the markets. We have no knowledge of the level of money you are trading with or the level of risk you are taking with each trade.