EUR/JPY Technical Analysis: Bearish Trendline & Doji Patterns in Play
Arslan Butt • 1 min read
The single currency Euro came under selling pressure for a while after the European Central Bank left its policy unchanged. However, this was a highly anticipated decision. ECB decided to continue keeping interest rates at record lows.
Mario Draghi signaled steady interest rates this year despite a sharp slowdown in economic growth. The US dollar finished the day in the red after Fed minutes confirmed the dovish view on policy from the FOMC for 2019.
Anyhow, everything is priced in already, and the ECB doesn’t seem to impact the EUR/JPY which is offering a pretty strong bearish setup.
On the hourly chart, the EUR/JPY pair is facing stiff resistance around 125.440. EUR/JPY tests the double top resistance of 125.440 but failed to cross above this level. In fact, the pair has formed doji and shooting star patterns right below this level. This may trigger a sell-off in EUR/JPY today.
On the lower side, the support can be seen around 125.100 and 124.800. Whereas resistance prevails at 125.44 and 125.66. So, we just opened a sell signal below 125.44 resistance to target 125.05.