EURJPY as with other YEN pairs has been in a bearish trend with the formation of lower lows and lower lows. Market brok the support which has now turned into a resistance. From this resistance we will take a short position once the market forms an engulfing or pinbar. This impulse entry has the potential to take another short impulse.

The ascending trendline has been broken out for sells and the market has validated the breakout sell as well because the support has been breached as well.

There is no retracement level as per our setup because we do not count in the 31.8% retracement, which is in confluence with the resistance level.

EMA 50 is bearish as well and has the potential to tap the prices at the resistance level from where the market can go short.

RSI is at 44. This level needs to be neutralized at the 50 level. At 50, all other technical parameters will be in confluence and aligned which will triggger the short sell.

EURJPY shorts from 140.50

Feb 03 2023