EUR/JPY Is Bearish

EUR/JPY has been incredibly bearish, practically free falling, ever since the fundamentals yesterday. The pair broke out below the support at 132.70 and continues moving to the downside, towards the next possible support at 131.65, which is the last low. That said, apart from the fundamentals yesterday, there were some obvious signals that the pair would start falling – on the four-hour time-frame there was an obvious double, even triple top at the resistance at 134.50 and there was also a shooting star candlesticks at the same level. What is more, on the daily time-frame there was also a double top that has been developing for the past month. 

Considering all these signals, it is quite likely that EUR/JPY will break out below the support at 131.65 and continue moving to the downside, towards the next support at 130.35, which is the (MA)89 indicator on the daily time-frame.