Bearish technical combination in EURJPY
Technically EURJPY remains in a bullish trend as price continues making higher highs and higher lows. As long as price is above 129.70 trend remains bullish. Price continues to trade inside the upward sloping wedge pattern and despite the new higher high, the RSI did not follow, providing us with a bearish divergence.
Blue lines – wedge pattern
Price continues to trade inside the boundaries of the blue trend lines forming the wedge pattern. Support is key at 130.30-130.15. Breaking below this level will be the first sell signal given since last August. No bearish signal since then. Price has moved considerably higher and the chances of a reversal or at least a pull back have risen. So it is important to keep a close eye on the specific support level. If price breaks this support level then a break below 129.70 will confirm the bearish signal and will open the way for a move towards 126 at least.
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