EUR/JPY
On the EUR/JPY cross, a rally was witnessed yesterday – in the context of a downtrend. The rally is supposed to be a wonderful opportunity to sell short at better prices, as the market could go downwards again. The demand levels at 126.00, 125.50 and 125.00 would eventually be tested.
There is a Bearish Confirmation Pattern in the market. The EMA 11 is still below the EMA 56 and the RSI period 14 is below the level 50. This is a bear market, and long trades are not currently logical, owing to a measure of stamina in JPY.