Cross-rate signals: EUR/JPY is limited to a downtrend

On the general weakness of the US currency and the pound, the euro managed to strengthen significantly in most other crosses. EUR/JPY became an exception and broke the established downtrend, updating a maximum of 130.80. But there are no significant fundamental factors for this.

So, the pair EUR/JPY unloaded the oversold forex indicators, which were traced on D1. The return of the cross below the level of 130.00 will indicate the resumption of the downtrend. The formation of a “head and shoulders” figure is also possible, which will be confirmed by a downward trend, but will cause an additional resistance test of 130.30-50. Return to the downward trend will open the way for sellers to support levels: 129.70-50 and 129.20-00. The main resistance is: 130.40-50.

Fig. EUR/JPY. Current price -130.20

Hanzenko Anton