- EUR/JPY falls below a rising support trend line, giving bears an opportunity to target lower levels for a day trade.
- From a long term perspective, the cross is pressured at a supply zone.
- Bears line-up patiently for a swing trade target in the 122’s awaiting an entry below 125.50.
The price of EUR/JPY has moved into a bearish situation on the 15-mn chart following a break of the support structure and a current retest for entry.
Bears may see this as an opportunity to short with a stop loss above the recent highs, (move the stop to breakeven when a new support structure is formed below entry), targeting a 1:2 risk to reward to a prior resistance structure on the 4HR time frame.
1-hour chart
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15-min chart, MACD turning bearish
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4-HR target zone
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Update: Breakeven achieved
The price has formed a new support structure so the trade is now a breakeven minimum:
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Swing trade analysis
Meanwhile, from a longer-term swing trading perspective, the price has reached a strong level of resistance and a correction could be in order.
As can be seen on the above monthly time frame, a 38.% Fibonacci retracement lines up perfectly with prior resistance which could be targetted.
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Nearer term, the weekly chart offers a higher risk to reward target which bears may wish to skip because there still needs to be confirmation from a lower time frame that price is going to remain bearish below important resistance structure. Let’s take a look…
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As can be seen on this daily chart, the bears have some supporting levels to crack yet before there is a clearance below 125.50 or a more conservative 124 to target the aforementioned monthly 38.2%:
