By Rita Ruvinski – The pair has recorded much bullish behavior in the past 2 days. However, the technical data indicates that this trend may reverse anytime soon. For example as described below, the 30min. chart’s signals that a bearish reversal is imminent. This might be a good opportunity for forex traders to enter the trend at a very early stage and at a great entry price.
Below is the 30 min. chart of the EUR/JPY currency pair
The technical indicators that are used are the Fibonacci, Relative Strength Index (RSI), and Slow Stochastic.
Point 1: The Relative Strength Index (RSI) indicates that the price of this cross currently floats in the overbought territory, signaling a downward pressure.
Point 2: The Fibonacci Retracement shows that the pair has rebounded on its resistance key level of 123.00 and is challenging its support. The next levels that are likely to provide significant support are around 122.50 & 122.80.
Point 3: The Slow Stochastic indicates a bearish cross, signaling that the next move may be in a downward direction.
Forex Market Analysis provided by Forex Yard.
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