EUR/JPY traded below the upward trendline during early US trading yesterday. 117.6 provided interim support but price wasn’t able to break back into the trendline, forming a Shooting Star with the tail touching the trendline. Current price has finally breached 117.6 and tested 117.0 round number briefly. Keep a lookout for the possibility of a 2nd Bearish Confirmation along 117.6 for gains in bearish momentum. A move back above 117.60 will once again open up trading range up to 120.0.
Daily Chart is also mildly bearish with the breakout from Channel proving to be false. Price has the possibility of testing Channel Bottom once again, potentially around 116.0 levels based on current momentum. Stochastic readings is also lower, but not yet breaching sub 80.0 levels. True bearishness using Stochastic could be found should price maintain current levels for the next 1-2 weeks, resulting in price breaking Channel bottom coinciding with a Stochastic reading below 80.0.
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