FBS: trade recommendation for EUR/JPY
Tatiana Norkina, FBS analyst
The currency pair was not able to take hold on supporting level of 138.70/138.75. The morning consolidation was ended by the victory of bears, after that the pair has updated its lows and reached the target range of 138ю00, that was mentioned in the previous review.
However, as we assume, the most likely target of the bears is in the 137.50 figure. Therefore, the selling of the currency pair will be relevant in the near future.
The descending tops are supported by technical indicators. For example, Bollinger Bands expands descending direction, the MACD histogram is falling downwards. At the same time, RSI has already been in the oversold zone that suggested the consolidation of the pair at current levels.
Technical levels: Support - 138.00, 137.50; resistance - 138.50.
Trading recommendations:1. Sell — 138.30/40; SL — 138.60; TP1 — 137.50.