FX.co ★ EUR/JPY: downside reversal in play

EUR/JPY Uptrend Violated!

The EUR/JPY pair is trading at 149.24 at the time of writing. Failing to stay above the uptrend line signaled exhausted buyers and an overbought market. Dropping below the uptrend line (downside obstacle) signaled a potential downside reversal.

From the technical point of view, the former low of 149.09 represents a downside obstacle. As long as it stays above this level, the rate could jump higher again.

EUR/JPY Trading Conclusion!

Dropping and stabilizing below 149.09 former low activates more declines. This is seen as a selling signal.