EURJPY → Head and Shoulders on H4

6 Jun 2023

EURJPY initially formed a reversal pattern on the local timeframe. After the price failed to break the 150.2 area, a global "Head & Shoulders" pattern is formed

The chart clearly shows an uptrend bounded by resistance and support.
Within the uptrend the price makes a false-break and forms a reversal pattern "Head and shoulders".
The basis of the pattern is the level of 148.86. If the price breaks this line, the decline will continue.
The price is testing the MA-200 support. Most likely, the price may retest it to try to break through and continue falling down.
MA-50 acts as a strong resistance

Strong support: 148.86, MA-200, 147.807
Strong resistance: 149.79, 150.200
I expect a rebound from the support and the formation of the retest to 148.86 (or MA-200) with a further breakout and downward movement to 147.8, 147.

Regards R.Linda!