EUR/JPY: Trade ideas for July 23
The EURJPY has been in a strong bearish bias in the last days, because this pair has consolidated below the 200 and 500 EMA, so more bearish movements will come soon. Now, the EURJPY is trying to form a bearish pattern. If the pair manages to make a breakout in the support level of 136.51, it's expected to fall to the level of 135.85.
The upside of this pair, the EURJPY found resistance at 137.37 level and if it can make a breakout at that level, the next target would be the level of 137.97, where EMA and the 500 which is located invalidate our bearish outlook for this pair. The CCI indicator is showing a bullish divergence.
Trading recommendations: Place sell orders if the EURJPY does a breakout at the support level of 136.51, with take profit at 135.85. Also, you can place buy orders only if this pair does a breakout at the resistance level of 137.37, with take profit at 137.97.