EUR/JPY - Bearish

FX:EURJPY   Euro / Japanese Yen
Price has clearly reversed from 136.00 with a large bearish engulfing candlestick during February. This took out 6 months worth of prior price action - a massive release of pressure after a long rally in 2017. Last month, price smashed through 128.00 monthly support and closed below both EMAs. As we approach the end of June, it's clear that we have retested and rejected 2 key levels as well as our EMAs ready for further downside action.

Weekly EMAs are downward facing and acting as clear dynamic areas of resistance. Lots of indecision over the past 2 weeks as the market was deciding its direction. We should see a clean break this week of 128.00 followed by further decline.

Lower highs and lower lows - bearish engulfing candle last week testing the 128.00 level. Yesterday we saw a hanging man formation - a brilliant indication of reversal to the downside. Today we also closed strong on the daily TF with a significant bearish candle. EMAs aligned with the weekly.

Nice pullback and triangle formation squeezing price into the monthly zone. We have now successfully closed below the monthly level, broken the CTL and had EMAs crossover to the downside.