The Euro has been one of the top performers for just over two weeks now though it failed to continue gains post Macron’s presidential victory. This was mostly priced in though we had most Euro pairs open with gaps which were quickly closed as traders took profit when the market opened at the beginning of the week. As a Euro bear, I will be looking for selling opportunities on this pair.

EurJpy Daily Chart

Price has failed to break up a strong resistance level of 124.5 and has so far shed close to a 100 pips. This could be a result of bulls taking profit. With an overbought stochastic now moving down into proper trading conditions, I am expecting price to retrace lower to MM3 where there is confluence between that level and the trend lines at 121.697.

EurJpy H4 Chart

Price opened at resistance at the beginning of the week at 124.5 and retraced back to 123.00 at WPP.With price currently at WM3, Should it fail to break this level and move down to break the 21 Moving Average, then a head and shoulders reversal pattern would likely be formed.

EurJpy H1 Chart

Price is currently at the daily pivot/WM3 (Confluence) within the fib zone and has been flat during the Asian session. I will be looking for a break to the downside and a lower high on a lower time frame chart for entry.

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