EUR / JPY: appropriate levels for new short positions

Downward medium-term movement, trade in its direction.

The price reaches a diagonal resistance (red color) and a chronological weekly resistance.

The closing of the last candles is below these two resistances, which gives us good positioning levels with SL 128.910.

Two equal maximum of the previous two bars.

The portrayal of the short-term downward movement comes from Alexander Elder’s “Three Screen” system.

Alternative scenes:

1) the inability to reach a line of channel 1 would result in the formation of the technical figure wedge;

2) breakthrough, test and repulsion from both resistances.

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