Double Top EURJPY - Technical Bias: Bearish

Technical Bias: Bearish

Key Takeaways

• Double Top technical pattern
  
• EUR/JPY retraces Monday’s decent advance and returns to 123.50.
  
• Virus cases are suddenly rising in France, Germany and Spain, raising concerns for a second wave.
  

Technical Analysis
The cross remains under pressure on the back of the continuation of the buying interest surrounding the Japanese safe haven and the corrective downside now underway in the European currency. The bearish momentum is starting to accelerate towards the ascending trendline which coincides with the 123 handle. A break below this level could open up 122 and then 121.50 where we might see some support off the 200SMA.

Trade Idea
Wait for a break and hold below the 123 and then a bounce back to rest the current level of support as resistance. Look for staling bullish action to confirm downside shorting opportunity.

Regards,
Michael Harding

RISK DISCLAIMER
Information and opinions contained with this video are for educational purposes only and do not constitute trading recommendations. Trading Forex on margin carries a high level of risk and may not be suitable for all investors.