The EURJPY is nearing the upper boundary of the ascending channel, which means that a minor dropdown is likely to occur next. Such a bearish correction does not have to entail a complete trend reversal but merely to act as a minor retracement of the broader uptrend.
Even still, contrarian traders could catch a sizable dropdown to one of the next psychologically significant targets - the 23.6 per cent Fibonacci retracement at 130.718 or the 38.2% Fibonacci at 128.988. That is if the price manages to break down below the channel's upper boundary.
Notice that the uptrend consists of three major legs (the third one currently being developed). Dropdowns occurred each time that the MACD reached a climax, which is currently being the case. Hence, a bearish crossover at the present rate would likely entail the emergence of another dropdown, which would be inlined with the primary expectations.
Even still, contrarian traders could catch a sizable dropdown to one of the next psychologically significant targets - the 23.6 per cent Fibonacci retracement at 130.718 or the 38.2% Fibonacci at 128.988. That is if the price manages to break down below the channel's upper boundary.
Notice that the uptrend consists of three major legs (the third one currently being developed). Dropdowns occurred each time that the MACD reached a climax, which is currently being the case. Hence, a bearish crossover at the present rate would likely entail the emergence of another dropdown, which would be inlined with the primary expectations.
