EURJPY - Looking to sell close to the reverse trend line resistance

Ian Coleman FXStreet

Technical

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. The Marabuzo level (mid-point from open and close) is located at 132.76. Price action in April has seen sellers emerge above this level. Previous support level of 128.95 has been broken.

Weekly: A 261.8% extension level from the current trend (137.55-128.99) is located at 115.14. This is close to the April 2017 low trade at 114.85. A long-term target area. Bespoke support is located at 124.66, just above the 161.8% extension level. Previous support now becomes resistance at 129.00. Bespoke resistance is located at 129.22.

Daily: The 50% Fibonacci level is located at 133.22 (from 137.48-128.95). We have also seen a rejection of the Ichimoku Cloud top. The reverse trend line resistance from the trend of higher lows (blue line) is located at 129.36. With a stop placed above this are, selling rallies offers ample risk/reward.

We look to Sell at129.00

Stop: 130.50

Targets: 124.70

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Author

Ian Coleman

FXStreet

Ian started his financial career at the age of 18 working as a Junior Swiss Broker at Godsell Astley and Pearce (London). He quickly moved through the ranks and was Desk Manager at RP Martins at the age of 29.

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