Large Channel Formation: EURJPY has been trading within a well-defined large channel, creating a clear pattern of support and resistance levels.
Resistance Zone: The currency pair has reached a major resistance zone, which has proven to be a significant barrier in the past. This could lead to a potential reversal and a move towards the lower boundary of the channel.
Trendline Respect: EURJPY has been respecting a large trendline, which indicates the market's overall sentiment and direction. The pair's adherence to this trendline further supports the downside momentum.
Considering the large channel formation, resistance zone, and trendline respect, it is reasonable to expect downside momentum in the EURJPY currency pair. This presents a potential short trading opportunity. As with all trades, proper risk management and trade execution are essential to increase the likelihood of success. Always ensure that you monitor the trade and adjust your stop loss and take profit levels accordingly, please trade with your own risk!
Resistance Zone: The currency pair has reached a major resistance zone, which has proven to be a significant barrier in the past. This could lead to a potential reversal and a move towards the lower boundary of the channel.
Trendline Respect: EURJPY has been respecting a large trendline, which indicates the market's overall sentiment and direction. The pair's adherence to this trendline further supports the downside momentum.
Considering the large channel formation, resistance zone, and trendline respect, it is reasonable to expect downside momentum in the EURJPY currency pair. This presents a potential short trading opportunity. As with all trades, proper risk management and trade execution are essential to increase the likelihood of success. Always ensure that you monitor the trade and adjust your stop loss and take profit levels accordingly, please trade with your own risk!