FX.co ★ EUR/JPY: deeper drop expected

EUR/JPY New Downtrend!

The EUR/JPY pair crashed in the short term and now is trading at 144.10. Dropping below the uptrend line signaled exhausted buyers and that the uptrend could be over. Technically, the uptrend line represented a downside obstacle.

As you can see on the H1 chart, personally, I've drawn a downtrend line, this is seen as an upside obstacle, so the EUR/JPY pair could drop deeper as long as it stays below it. It has also dropped below the 144.19 former low signaling strong sellers.

EUR/JPY Trading Conclusion!

Breaking below 144.19 was seen as a selling opportunity. Now, it has increased a little to retest that broken downside obstacle and to confirm its breakdown before going down.