EUR/JPY: trade idea
- EUR/JPY reversed from resistance level 136.00
- Next sell target - 130.40
EUR/JPY has been falling from the middle of February – when the pair reversed down from the strong resistance zone lying between the resistance level 136.00 (the pair have since made a few unsuccessful attempts to break this resistance level), the upper daily Bollinger Band and the 38.2% Fibonacci Correction of the preceding sharp downward impulse from the end of December (as you can see from the daily EUR/JPY chart below). The downward reversal from this resistance zone completed the preceding primary ABC correction ② from January.
EUR/JPY is expected to continue to fall in the active intermediate impulse (3) to the next sell target 130.40 (which stopped the preceding primary impulse ①).