EURJPY pair has been dropping for almost 2 weeks, and I continue to be Bear with this pair.
On H4 chart, we can see the price has been forming the down channel, and currently at the bottom of the channel, after breaking the support zone (around 131.25).
As the next sell zone, I would like to suggest the following 3 zones.
a) H4 21 EMA
b) H4 55 EMA
c) WPP (131.20 – 131.40 area)
I think c) above is very interesting.
If we look at Daily Ichimoku chart, Tenkan Line (Red Line) can be another resistance.
So if the price comes up to this level, I will definitely sell this pair.
Hope this setup helps you build your own.
YJ Baik – Forex.Today @ Tokyo