By Admiral Markets
The EUR/JPY has formed an Inverted Head and Shoulders pattern, but at this point, we see the rejection from the trend line that holds resistance for the pair. We can see that the POC zone is holding and the 78.6 is rejecting the price to the downside.
132.15-25 is the POC zone, and targets are 131.60 (strong support) and 131.20. However, if the bearish momentum is strong, we might see even 130.69 a test of W L3 support. Below 130.69 we should see a continuation down.
However, a spike above 132.25 should put bulls in control, and the price might reach 132.90.
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A drop below W L4 -24775 and the price might go further down towards the trend line and 24277
W H3 -Weekly Camarilla Pivot (Weekly Interim Resistance)
W L3 – Weekly Camarilla Pivot (Weekly Interim Support)
W H3 – Weekly Camarilla Pivot (Weekly Interim Resistance)
W H4 – Weekly Camarilla Pivot (Strong Weekly Resistance)
M H4 – Monthly Camarilla Pivot (Very Strong Monthly Resistance)
M L3 – Monthly Camarilla Pivot (Monthly Support)
M L4 – Monthly H4 Camarilla (Very Strong Monthly Support)
POC – Point Of Confluence (The zone where we expect price to react aka entry zone)
Article by Admiral Markets
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