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.
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.
