EURJPY has formed a huge M pattern and subsequently fell to test 133.00 zone. M bearish pattern has 3 points. When point 2 is broken then we expect the price to proceed with a continuation in bearish direction. First confluence point comes around 135.10-30. We can see a confluence of M – point 2, 50.0 , and historical sellers (red rectangle ).
Additionally inner trend line is intersecting the wick of sellers thus providing additional confluence point. Rejection to some extent is expected within the zone. If the pair proceeds further with retracement POC2 provides final rejection point. 61.8 and X cross are making a confluence in the zone – 135.80-90 and that is the final stand for bearish swing.
Pay attention to these 2 zones, and if the price rejects the target is 133.40. For this scenario to succeed 136.20 should hold.
The analysis and the article presents Nenad's opinion. Remember, financial trading is highly speculative & may lead to the loss of your funds. Proper risk management is the Holy Grail of trading.
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