EURJPY has been in a bearish trend since long. Given EURJPY, has not been able to shift towards a bullish trend, we will continue looking for the bearish trade setup.

The market structure on EURJPY is still bearish, with LL’s and LH’s being formed. We will wait for the market to tap the resistance level to take the short position. Right now, market is at a strong support level. We can look for a buy setup from this level but this is a risky buy trade, therefore we will avoid trading.

The trendline structure is showing a descending pennant pattern. The lower trendline has been tested at the support level and is being rejected. On the other hand, the upper trendline is being retested right now as well. This situation can breakout buy from the trendline but the fact remains, we are still in a bearish trend and this breakout buy won’t be able to do much to take the market higher.

At the resistance level of price 129.10, we have a confluence of the golden retracement level of 75-78.6%. This retracement having a confluence on the resistance level highlights the strength of this region. This impulse wave would continue down towards the 0 retracement level.

Both the EMA 50 and EMA 200 are in a bearish sentiment, with a bearish death cross. After the breakout sells of the EMA 50, market was unable to retest at the EMA 50. At the support level, we anticipate a retest of the EMA 50. This EMA 50 will give us a second factor for sells.

With the oscillators, both are in the over-sold region. The RSI is at the 46 levels, whereas CCI is at -124. We need to wait for the oscillators to breakout from the neutralized levels for sells.

EURJPY in a downtrend

Nov 29 2021

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