FX Forecast – EURJPY D1 Long
Our Expectations: A new bearish trend is starting, lower highs and deeper bottoms – Formation 1,2,3. We believe that the short-term upward correction will end at these levels, the price can’t breakthrough the resistance and form a “Pincer” figure.
Price Action: Pin bar on resistance levels.
Death cross of 50 and 200 SMA – a strong negative signal, the price remains below the moving averages.
DeMarker turns below 0.7, signal to decline.
Correction to 38.2% Fibonacci.
Alternative Scenario: A breakthrough 131.5 will break the downside formation and send the price to test 200SMA.
Trader Georgi Bozhidarov