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EUR/JPY: Bearish move followed by an upward correction, what is next?

EagleFX

EUR/JPY produced two consecutive bearish candles on the daily chart. The pair made a bullish move upon the ABC pattern. The price seems to have found its resistance and it has been heading towards the South now. On the H4 chart, the price made a significant bearish breakout and traded below the level for a while. After consolidation, the price has been having an upward correction. A level of resistance may come into play. If the level produces a bearish reversal candle, the sellers may go short in the pair below the last swing low.

Chart 1 EUR/JPY H4 Chart


The chart shows that the price upon producing a bearish engulfing candle headed towards the South with good bearish momentum. It had a bounce at 117.080 and produced a bullish track rail. Since then the price has been bullish. The pair is trading at the level of 117.540. The level may produce a bearish reversal candle. If that happens, the sellers may go short below the level of 117.080.

Trade Summary:

Entry: Sell below 117.080
Stop Loss: Above 117.540
Take Profit 1: 116.600
Take Profit 2: 116.370
Take Profit 3: 116.000

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