EJ Analysis

Daily: As we can see from the chart, the pair has respected the downtrend and printed a new Lower High, signaling a potential leg lower to form another new Lower Low. In addition, the pair has also broken below the 128.5 support which has previously printed a pin bar formation. A sustained break would expose the pair to downside 127 where it will find the next support. Alternatively, if the pair managed to closed back above 128.5, it will rechallenge the upside at 129.75 for further rally. A clear break above the downtrend would invalidate the bearish setup.
4H: On the 4 hour TF, we can clearly see a downside break of the range 128.5 - 129.75. The pair has printed a candlestick with a long upper shadow as it closed below the range. This could be taken as a rejection and confirmation towards the break and targets the downside at 127. However, I would favor a small pullbacks to looks for a potential entry rather than entering straight away. A sustained move back above 128.5 would put the pair back within the range. In addition, the 21 EMA has crossover to the downside, indicating a sell signal. We will only be looking for sell signal for this pair.