EURJPY:- 128.500 Acting As Minor Support On A Heavily Bearish Market
EURJPY:- From our previous post we have seen the price revisit the 129.250 level that acted as such a strong support for the pair now turned into resistance. A rapid Decline after retesting that region saw us once again be supported by the 128.500 level. This is yet to be confirmed as a reliable floor for the pair as 4-hour price is consolidating around the level but yet to offer reliable bullish price reaction.
I will only be looking to trade in favour of the downside on the pair and therefore will look to be selling the pair at any levels of retracements. Its hard to really know how weak the Euro is regarded, but I currently favour a deeper retracement for prime execution.
A set up that could be considered is a retracement back to the 130.000 regions of the price that comes in alignment with our favour Fibonacci region and a 3rd touch of a descending trendline which would provide confluences to short the pair back in the lower regions of support around 128.000 and 127.000 respectively.
Please be aware that the level of 129.250 will provide a difficult barrier to be broken but could be the go-to signal when identifying a deeper pullback.
I will be keeping an eye out for Euro recoveries as there are no fundamentals announcements that I believe will affect price movement.