EURJPY Downward Momentum Pilling Up!

The Monthly chart image above shows the price is confined in a long term triangle. Currently the monthly 50 EMA and 126.200 are acting as crucial support. For this pair to break to the downside they both need to be violated i.e the monthly candle should close below both support and EMA. Following this the price is highly likely to target the ascending trendline of the monthly triangle!

Looking at the main chart (weekly chart) it can be seen that the price is respecting the long term trend line. Currently the price is also trending below the weekly 50 EMA!. It remains to be seen if the price breaks this trendline and if so whether it goes beyond the monthly EMA and support level of 126.200. Its a high probability trade and its worth a wait.

Currently going LONG on EURJPY is not a favorable scenario as the price just bounced off the main monthly descending trendline and is headed down most likely. Its better to stick with the main trend rather than counter trend trading. Stay Tuned for any updates in the coming few weeks as i monitor this pair closely!