NoCeilingsTrading

SHORTING EURJPY IDEA

Short
FX:EURJPY   Euro / Japanese Yen
  • Eurjpy has been a strong uptrend lately. The catalyst to this strong move to the upside was the Inverse head and shoulder that formed.


  • Price broke the neckline of the IHS which also served as a level of resistance. Because price broke this level, it will now serve as support.
    The break of the neckline caused price to create a new high (or higher high).


  • Therefore I am looking to sell the retracement to test the neckline (the new support level ) which should create a higher low.


  • I drew a Fibonacci from the most recent higher low to the new high. I am expecting price to retrace to the golden area of 50.0-61.8 Fibonacci level which correlates to the anticipated support level and hopefully respect the trendline.


  • Also if you take a look at the RSI , there is a bearish divergence that exist.


    Like, or comment if you see something different. Feel free to post your analysis if you have a different point of view. I am open to all comments!!

Comments

Great analysis, thanks for sharing 🦐
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