EUR/JPY further downside

FX:EURJPY   Euro / Japanese Yen
EUR/JPY             has continued to sell off from 137.00 level, trade entry as a result of spinning top and bearish engulfing candle on 4H time frame, key levels such as 136.20's were also broken with ease.

Was expecting an initial pull back at 136.20's to re-test 137.00 and to confirm trade entry at that level as shown by the arrows, instead a clear break took place and went on to push downwards with decisive price action on 4H chart.

134.50 has just been broken so now I believe profit target of 133.50 is very much attainable, correlating with previous support levels on the 11th of May and even further back - it also ties in with the 38% retrace from April swing lows to the recent 137.00 highs (4h)

RSI continues to point downwards and clear trend has failed to be broken, looking for a retest of previous support level 134 and rebound for further confirmation of down trend continuation.

A clear break of 133.50 would point to downside target of 133, relative to price action and RSI .
Be careful of shorting down at these levels. Big bar moves like yesterday sometimes are there to shake off longs, clear protective long stops, and to suck in fresh shorts. We are expecting EUR/JPY to get back up to 136, 137, and eventually 140.70.
Thanks for the feedback. I sold in 136.90's so just looking to see if any further downside in short term, just spotted a new trend line which has formed from the mid April swing low to the most recent price low.. Going to see how much it comes into play
EURObull JoeNeilCarey
You're very welcome. Great group of traders here and really enjoying the interactions. Also on the chart you posted above, notice that your RSI has pierced your trendline to the upside. Hope this info is helpful.
I did notice yes, thanks for the help again!
EURObull JoeNeilCarey
You're very welcome, have a great day
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