EURJPY testing resistance, watch for potential drop!

5 Apr 2018

EURJPY is testing our first resistance at 131.35 (horizontal swing high resistance, short term descending resistance line, 78.6% Fibonacci retracement). A strong reaction might occur at this level, pushing price down to our major support at 130.52 (horizontal swing low support, 61.8%, 76.4% Fibonacci retracement, 61.8% Fibonacci extension).

Stochastic (55,5,3) is also approaching our major resistance and a reaction off this level might be a good precursor of a potential drop in price.

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