EURJPY - Downward trend will continue, Short trade by market price recommended

May 24, 2019 9:38:28 AM by Patrick Yang
Forecast Details
PairEURJPY
Direction Sell
StatusClosed (122.9)
Start
End
May 24, 2019
May 31, 2019

-100 p
123.90
Stop Loss
122.90
Entry
+120 p
121.70
Target 1
Chart & Analyst Comments
EURJPY - Downward trend will continue, Short trade by market price recommended

The downwards scenario is quite obvious, but the presence of a large number of "fellow travelers" will not allow the price to immediately go down. We expect a false move up and afterwards set up a Sell Limit.

  1. According to the most brokers’ data, more than half of the traders are currently in long positions on EURJPY. As a result, we recommend considering only Short trades at this time.
  2. The Profit Ratio reversal indicator doesn't react on downward movement. This means that the movement is not fake.
  3. The activity of "fresh" bulls while the downward movement may indicate that the market crowd still does not believe in a Bearish trend.
  4. We see an accumulation of loss buyers above the current price in the right Order Book. This cluster can act as a resistance.