EUR/JPY has been having a good year so far.
So what’s up with the pair getting rejected at 158.00 TWICE?
Are we looking at the start of a bearish reversal for EUR/JPY?
EUR/JPY Daily Forex Chart by TV
As you can see, EUR/JPY has been in an uptrend since breaking above the 146.00 range resistance in back in mid-April.
The pair hit a resistance at 158.00, though, not once but TWICE since late June.
In fact, EUR/JPY is forming what looks like a Double Top pattern on the daily time frame.
Is EUR/JPY headed for a bearish reversal?
Look out for a bounce or break below the 154.00 psychological handle that’s serving as the “neckline” of the bearish reversal pattern.
EUR bears can take advantage of the current momentum by shorting at current levels and aiming for the 154.00 potential support. You could even design a trading plan around a breakout that may drag EUR/JPY to 150.00!
Meanwhile EUR/JPY bulls can wait for a possible bounce from the 154.00 area that we’re watching.
The 156.00 zone is a good initial target to aim for in case of a bounce, but you can also bet on EUR/JPY retesting the 158.00 previous high or making new 2023 highs if there’s enough momentum.
Whichever bias you end up trading, make sure to use your best risk management moves so you get to trade another day!