Cross-rate signals: EUR/JPY forms a downtrend

Against the backdrop of the general strengthening of the Japanese currency and the sale of the American, the EUR/JPY cross-rate managed to break through the significant support at 135.00, which is confirmed by the expectations regarding the formation of a downtrend in this pair and further decline.

Thus, fixing the pair EUR/JPY below the level of 135.30-00 will indicate the development of the figure “double top”, which will open the way to the support levels: 134.40 and 134.00. Also, this decrease will signal about the possibility of a more significant correction after one-year growth to the support levels: 133.90 and 133.50. This will form the model of the “lateral triangle” movement. The resistance is located at the levels: 135.60 and 135.90, which corresponds to the upper boundary of the descending channel.

Fig. EUR/JPY. Current price – 135.30

Hanzenko Anton