FX.co ★ EurJpy May Be Unfolding Into Head and Shoulder Reversal. Hold Short Positions

Technical Outlook and Chart Setups:

The single currency pair may be finally unfolding a reversal pattern (Head and Shoulder); but prices should remain below 142.80/90 swing highs for confirmation. It is therefore recommended to hold on short positions taken at 142.20 levels earlier; the risk goes to 143.20. As depicted here, the resistance is fixed at 142.80/90 levels (the recent swing highs); while support begins from just below 141.00 levels, followed by 138.50, 137.00, 134.00 and lower respectively. The overall structure reveals that a major resistance (Fibonacci extension) has been met at 142.80 levels recently and a meaningful pullback should be expected (weekly setup). Furthermore, a possible Head and Shoulder reversal is being setup and pushed below 141.00 levels and now should accelerate its fall.

Trade Recommendations:

Hold on to short positions from 142.20 levels, stop at 143.20, target open.

Good Luck !