Forex: EUR/JPY has reached long-term diagonal resistance


Time frame: D1

The chart shows that the pair is moving in a long-term downward trend, and since September 2019 it has entered an upward correction. Currently, the price has reached a strong downward diagonal, which plays the role of resistance.

At the same time, the pair reached a strong resistance level of 61.8%, which previously failed to break through. This gives an additional signal that a fall in price is possible.

Price over 50 and 200 SMA
61.8% Fibonacci Test.
DeMarker over 50% which allows for a drop in price.

Fundamentals: Traders are concerned about a possible resumption of US-Iran geopolitical tensions. The fact that the United States is still aggressively against Iran and continues to hold a firm line helps create a search for safe havens.

SL: 123.40

Alternative scenario: Breaking the price above the resistance area will spoil the negative scenario for the couple.

 Trader Milko Zashev

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