FX.co ★ Daily analysis of EUR/JPY for June 4, 2018

EUR/JPY

There is a Bearish Confirmation Pattern on this cross, as a result of vivid weakness that began in the market in April 16. Price has shed roughly 700 pips since then. Last week, the bearish journey continued as price rammed into the demand zone at 125.00, and then bounced upwards (300 pips), without being able to form a confirmed bullish bias.

This week, a bearish reversal is expected, because of the weakness in EUR and owing to the bearish outlook on JPY pairs. The bearish reversal would enable sellers to enter short at some sensible prices.