EURJPY is priced in at 143, which is slightly above the resistance level. This resistance level has not been completely broken out for buys as there was no validation. Therefore, we anticipate a fakout and a continual reversal on the pair towards the bearish side. It should be noted that the trend seems bullish on the pair and we are just cashing in on the corrective move.

The trendlines have formed a bearish penant which needs to be validated after the ascending trendline has broken out for sells. These sells will act a continuous form for the level to move down.

EMA 50 is still bullish. The retest on this can be set as the profit target on our short sells.

RSI still needs to head over towards the 75 region, towards the over bought side. Once there, we will wait for the bearish divergence to be formed and then the market can continue to head down.

Bears incoming on EURJPY

Feb 15 2023