FX.co ★ EUR/JPY right on major resistance, prepare to sell

The price is reacting off major resistance at 130.50 (Fibonacci extension, horizontal swing high resistance, bearish pride action) and we expect to see a reaction off this level for a drop towards 129.61 support (Fibonacci retracement, horizontal pullback support).

Stochastic (21,5,3) is seeing a reaction off our 95% resistance with good downside potential to play the drop in price.

Correlation analysis: We are seeing JPY strength with AUD/JPY, EUR/JPY and USD/JPY expecting drops.

Sell below 130.50. Stop loss is at 130.81. Take profit is at 129.61.