A multi-month bearish divergence has formed on the EUR/JPY daily chart. And whilst the trend remains bullish, it has made harder work of gains in recent months whilst the bearish divergence formed.
There's also reason to suspect BOJ members are getting read to increase their verbal warning shits, with one member yesterday remining traders that they are watching currency movements. And with a renowned ECB hawk making a slightly dovish comment, EUR/JPY posed its worst daily gain in five weeks on Thursday.
The near bearish engulfing candle (the open was slightly below Wednesday's close), a growing case for a yen reversal and euro top, makes us suspect EUR/JPY is at or very near an inflection point.
From here, bears could seek to fade into minor rallies below 160 in anticipation for an initial move lower to 155.50.
There's also reason to suspect BOJ members are getting read to increase their verbal warning shits, with one member yesterday remining traders that they are watching currency movements. And with a renowned ECB hawk making a slightly dovish comment, EUR/JPY posed its worst daily gain in five weeks on Thursday.
The near bearish engulfing candle (the open was slightly below Wednesday's close), a growing case for a yen reversal and euro top, makes us suspect EUR/JPY is at or very near an inflection point.
From here, bears could seek to fade into minor rallies below 160 in anticipation for an initial move lower to 155.50.
