EUR/JPY – 1H – SELLThe combination Euro/Japanese Yen (EUR/JPY) jumps from the ascending trendline down.
A bearish trend downwards to the next support at 161.38200 is certain.
Caution: A possible reversal of the trend in the direction of the resistance zone at 164.54500 should be noted.
Consider stop-loss settings accordingly.
Additionally a ‘Last Engulfing Bottom:’ candle pattern is existing. The candles form ‘Last Engulfing Bottom:’. which is a negative signal. The currency pair is likely to go down. According to the Encyclopedia of Candlestick Charts by Thomas N. Bulkowski, the probability of ‘Last Engulfing Bottom:’ heading down is 65% (Bull Market) & 67% (Bear Market).
| Support & Resistance | Price Range* |
|---|---|
| 3rd High | 165.02900 |
| 2nd High | 164.89900 |
| Next High | 164.54500 |
| Current Price | 163.08500 |
| Next Low | 161.38200 |
| 2nd Low | 160.89500 |
| 3rd Low | 159.80200 |
Trading Signals: FOREX – EUR – EUR/JPY – JPY – Last Engulfing Bottom: