EUR/JPY May Begin a Retracement

EUR/JPY has slowly been moving to the upside – with occasional retracements and consolidations – for months, but now there will likely be another retracement. The pair has formed a distinct hanging man candlestick on the weekly time-frame below the resistance at 136.60, which is a fairly good signal for a likely move to the downside. If the pair does begin falling it will likely first reach the support at 132.70, which is the (MA)89 indicator on the daily time-frame. A breakout below that level could lead to a further move to the downside towards 131.00. On the other hand, since the trend is still quite bullish, once the move to the upside continues its long-term target will probably be around 139.00.