EURJPY broke out of support, further potential drop!

27 באפר׳ 2018

EURJPY broke out of our short term ascending support-turned-resistance line and our support-turned resistance line at 132.15 (horizontal pullback resistance). A strong reaction might occur at this level, pushing price down to our major support at 130.78 (horizontal overlap support, 61.8% Fibonacci retracement). A breakout below our first support at 131.71 (horizontal pullback support, 38.2% Fibonacci retracement, 100% Fibonacci extension) might provide the bearish acceleration to our major support level. Ichimoku cloud is also showing signs of bearish pressure, in line with our bearish bias.
RSI (34) is also seeing a bearish divergence and bearish exit, a good precursor for a potential drop in price.
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