EUR/JPY 'Anti Gartley' pattern, test of 121 levels likely
Intense selling pressure around euro ahead of ECB.
We see a bearish 'Anti Gartley' pattern on daily charts. RSI and Stochs are biased lower.
Strong bearish bias. Scope for further downside.
Bollinger Bands are widening and we see 23.6% Fibo (109.205 to 125.814 rally) at 121.89 as initial bear target.
Violation there will see drop to 100-DMA at 121 and then 200-DMA at 119.31. We see bearish invalidation on close above 20-DMA at 124.39.
Focus now on ECB policy meeting which could provide further impetus to the pair.
Support levels: 122.55 (May 18 low), 121.89 (23.6% Fibo 109.205 to 125.814 rally), 121 (100-DMA), 119.31 (200-DMA)
Resistance levels: 124.09 (5-DMA), 124.39 (20-DMA), 125.31 (June 2 high)
Good to go short around 123 levels, SL: 124.10, TP: 122.55/ 121.90/ 121
We see a bearish 'Anti Gartley' pattern on daily charts. RSI and Stochs are biased lower.
Strong bearish bias. Scope for further downside.
Bollinger Bands are widening and we see 23.6% Fibo (109.205 to 125.814 rally) at 121.89 as initial bear target.
Violation there will see drop to 100-DMA at 121 and then 200-DMA at 119.31. We see bearish invalidation on close above 20-DMA at 124.39.
Focus now on ECB policy meeting which could provide further impetus to the pair.
Support levels: 122.55 (May 18 low), 121.89 (23.6% Fibo 109.205 to 125.814 rally), 121 (100-DMA), 119.31 (200-DMA)
Resistance levels: 124.09 (5-DMA), 124.39 (20-DMA), 125.31 (June 2 high)
Good to go short around 123 levels, SL: 124.10, TP: 122.55/ 121.90/ 121