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EURJPY Sells Off From New Resistance at 122.65

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Important: This site uses New York Close Forex Charts so that each 24-hour session starts and ends at 5 pm EST. These charts are essential for trading price action.

The EURJPY is in the process of coming off new resistance at 122.65.

I wrote about this idea just yesterday.

Last Thursday’s close below 122.65 meant the area would likely serve as new resistance this week.

Sure enough, we saw sellers defend the region on Monday and Tuesday.

With today’s session now off 122.65 by more than 50 pips, we have a new development on our hands.

If you take a look, you’ll notice that Friday and Monday carved consecutive inside days.

Friday’s session fits inside Thursday’s range, and Monday was inside Friday’s.

Because EURJPY has been trending lower since March, these inside days illustrate a bearish continuation pattern.

Technically speaking, the pair has been trending lower since February of last year.

Tuesday’s low of 122.05 has triggered this sell signal.

Remember that the market must breach the high or low (in this case the low) of the mother bar to confirm the pattern.

That was Thursday’s low of 122.14.

Keep in mind that there are never any guarantees. As appealing as this setup may be, it does not mean EURJPY can’t rally from here.

That’s why it’s always a good idea to keep your position size under control.

As long as the inside day highs at 122.80 are intact, my bearish bias for EURJPY will also remain intact.

But even a print above 122.80 wouldn’t necessarily negate things here.

I’m more focused on whether or not EURJPY stays below that 122.65 handle on a daily closing basis.

So far, so good.

Key support comes in at 121.00 followed by the flash crash low near 119.00.

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EURJPY consecutive inside days on the daily time frame

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6 comments
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    Thabang says

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    Reply
      Justin Bennett says

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      Reply
Zakariya Babayo says

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CK says

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May All benefits from your trading expertise 🙏

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    Justin Bennett says

    You’re welcome.

    Reply
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