EUR/JPY Technical Analysis
- Looks like a roof top pattern
- The break below the trendline is bearish
- New lower low should come into play
- Order block zone
- Rally High
- Break below the trendline
- Target 1
- Target 2
The price is in downtrend. Seems like we are in risk off mode. During the 100% risk off sentiment:
2.Commodities prices down
4.Yen strengthens as a result
This happens because the Japs can get cheap credit, so they invest overseas heavily. When its risky, they bring the money back creating demand for Yen and vice versa, when its bullish Equities, they pump their money overseas, which means they sell Yen and buy foreign currency. At this point Yen is getting stronger. Expectation is that the pair should be moving towards 131.37 and 130.66 respectively.
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Cheers and safe trading,