EUR/JPY Price Analysis: Bear's stars alligning for both short-term and swing-trading opportunities
Developing story
EUR/JPY monthly chart
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From a monthly perspective, EUR/JPY is in a supply zone and following such a long period of being in a bullish trajectory, a 38.2% Fibonacci to prior resistance can be expected.
The cross is also failing at daily support and the wick could be filled in:
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EUR/JPY resistance structures
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EUR/JPY has its work cut out below critical resistance structures.
EUR/USD daily chart
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The euro is testing trendline support in supply territory, a break of which reinforces the downside case for the euro crosses.
EUR/USD 4HR
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The price is testing back above the trendline at resistance and familiar Fibonacci retracement levels that would typically to hold up the correction.
EUR/USD 1HR resistance
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A series of impulses and corrections so far point to correction at resistance, which brings us to the EUR/JPY cross...
EUR/JPY day trade lining up
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The conditions are all aligning for a short setup on the lower time frames and the euro is under pressure vs the greenback.
The hourly chart shows the price creeping towards resistance where a deceleration will open prospects for an entry on a lower time frame, such as the 15-minutes chart.
Price action will be monitored for a favourable entry with preferable risk-reward.
More to come from both a day trade and swing trading perspective as the price action eveolves...