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EUR/JPY Triple Top For a Good Short Trade

By:
Nenad Kerkez
Updated: Aug 22, 2022, 08:35 UTC

EUR/JPY is bearish. Technicals show a clear downtrend.

Japanese Yen FX Empire

In this article:

EUR/JPY Technical Analysis

  • EUR/JPY Triple Top Formation
  • Selling the rallies
  • Bearish trend continues below point 1
  • 134.30-60 is the first target

MEGATREND MAs: Bearish

D1 Chart EUR/JPY

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  1. Double bottom support
  2. Higher high
  3. Double top
  4. Intraweek target

EUR/JPY is bearish. Technicals show a clear downtrend with many attempts to break the blue line point 1 as the price is bouncing. However, today’s candle might break it lower and continuation below the point 1 should lead the price lower to intraday target -136.57 and eventually towards the intraweek target 134.31 or 132.41 depending on the ATR and momentum.

These are the reason when Yen is getting stronger:

Yen strength

1.100% risk off sentiment

2.Gold up

3.Commodities prices down

4.Equities down

5.Yen strengthens as a result

It happens because the Japs can get cheap credit, so they invest overseas heavily. When it’s risky, they bring the money back creating demand for Yen and vice versa, when its bullish Equities, they pump their money overseas, which means they sell Yen and buy foreign currency.

This analysis, and all entry signals and targets are a part of the Megatrend system and a trading course. I am maintaining the short trade on EUR/JPY with an entry at 137.32.

Cheers and safe trading,

Nenad

About the Author

Nenad Kerkezcontributor

M.Ec. Nenad Kerkez aka Tarantula is Elite CurrenSeas Head trader and a valued contributor to many premium Forex and trading websites.

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