EUR/JPY simply broke beneath a technical sample!

For those who haven’t observed, a combo of threat aversion and a burst of yen power dragged main JPY pairs decrease within the final buying and selling periods.

In EUR/JPY’s case, all of the yen-buying has translated to an extension of a downswing that started when the pair obtained rejected on the 151.00 psychological deal with.

The pair is now buying and selling nearer to 149.50, which is beneath the 100 and 200 SMAs on the 1-hour timeframe.

Extra importantly, it’s additionally beneath the ascending channel sample on the chart.

Are we taking a look at a bearish reversal for EUR/JPY?

EUR/JPY 1-hour Foreign exchange Chart Chart by TV

Present market themes are saying “guess.”

For one factor, China’s PMI misses earlier at the moment are placing the highlight again on international development considerations now that it appears just like the U.S. isn’t at risk of defaulting on its money owed.

An unscheduled assembly between Japanese finance officers have additionally spooked some JPY bears into promoting the yen crosses close to the top of the month.

Lastly, the Eurozone’s flash CPI estimate scheduled tomorrow is anticipated to indicate slower value development in Could. A slower CPI would give the European Central Financial institution (ECB) one much less motive to boost its rates of interest additional in its subsequent assembly.

For now, I’m retaining shut tabs on how EUR/JPY reacts to the S1 (149.42) of at the moment’s Normal Pivot Factors.

A bounce from the extent opens the potential for a break-and-retest state of affairs close to the Pivot Level (150.18) and damaged pattern line assist zone.

But when EUR/JPY breaks via the S1 assist, then I’ll think about promoting at market and taking income close to the 148.70 space of curiosity if not the 148.00 psychological deal with close to the S2 (148.08) zone.

If I miss the breakout downswing, then I’ll additionally think about drawing a pattern line resistance from this week’s highs and leap in at potential pattern line retests.

How about you? Are you additionally within the “EUR/JPY reversal” camp?

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