Price on EURJPY is now moving lower after breaking out the daily support level as the daily chart shows below. The EURJPY is making large breaks lower in the huge and obvious downtrend market.
Before making the large breaks lower, we can see that the market consolidates and begin to trade in sideways with the downtrend begin to moving slower. I assume that this is when a lot of traders take the profit and exit the market. After that, strong sentiment and trend continue again and then price broke through the support level to confirm that the downtrend still ‘ruling’.
From here, I will start hunting for the short opportunity. If price able to pull back and retest the old support level/ new resistance level, I will start looking for a bearish signal. The next target, if the opportunity occurs, is on the next support level around 119.00.
EURJPY daily chart – zoom out
EURJPY daily chart – zoom in
EURJPY 4-hour chart
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