Free Trial

Monitoring The Bearish Engulfing Candle

EURJPY TECHS
  • RES 4: 129.47 1.00 proj of the Jun - Aug - Oct 2020 price swing
  • RES 3: 129.26 High Dec 13, 2018
  • RES 2: 128.59 High Dec 17, 2018
  • RES 1: 128.46 High Feb 17 and bull trigger
  • PRICE: 127.77 @ 17:30 GMT Feb 23
  • SUP 1: 127.31 Low Feb 17
  • SUP 2: 127.04 Low Dec 15
  • SUP 3: 126.40 50-day EMA
  • SUP 4: 126.10 Low Feb 4

The EURJPY broader outlook remains bullish despite Monday's pullback. Last Wednesday's price action highlights a potential short-term top and the possibility of a corrective pullback. In patterns terms, Wednesday's Japanese candle pattern is a bearish engulfing reversal. If correct, this signals scope for a correction and opens 127.04, Feb 15 low. A break of this level would allow for a deeper pullback. On the upside, the bull trigger for a resumption of gains is 128.46.

MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.