EUR/JPY: Are We Seeing Early Signs Of A Reversal?
EURJ/PY:- We have seen EJ approaching one of its critical barriers of price 132.000 and after spiking the price point to the absolute T, we could now be in the early stages of looking for a trend reversal. As price enters, what was previously, an extremely strong supportive region for the pair back in Septemeber to December of 2017, could now experience a strong resistance level that the price forms a new high at.
Bearing in mind the turbulent time the European Union is having and the extreme pressure that has recently been on the Euro, the Yen often takes over as a safe haven currency in which investors will look to keep safe investments in. It goes without saying that the market makers, institutional investors, central banks, and corporations do not like indecision and will be keeping a firm eye on Brexit negotiations especially on the current situation over in the UK.
Having taken all the economical situations into account and the relatively neutral - dovish outlook on the European Union, I would suggest that the currently traded region of 132.000 provides us with an exciting opportunity to begin a new leg to the downside. I will be awaiting a strong bearish daily closure to confirm a swing point reversal has formed and looked to base positions off minor retracements zones.