By Russell Glaser – Our Forex Technical Analysis shows a bearish pennant patter may have formed on the 4-hour chart of the EUR/JPY.
The typical bearish pennant takes roughly 1-3 weeks to develop and this instance is no exception. The chart below shows a steep decline in the price, followed by a continuation pattern, identified by 2 converging trend lines.
We will be looking for a break of the lower trend line for a continuation of the downward trend. Then the pair’s potential decline could be measured by the distance where the downward sloping trend line began (126.94) to a break of the lower line in the downtrend (121.90).
This would give us a price target of roughly 500 pips.
EUR/JPY 4-Hour Chart
Forex Market Analysis provided by Forex Yard.
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