EUR/JPY Three Black Soldiers Pattern Suggests Further Weakness

#OPINIONLEADER# #Signal#

ByLCMS Traders FX Analysis Team

 AUG 18, 2021

EUR/JPY Daily Forecast

EUR/JPY downtrend appears to be accelerating after breaching below the 1.2900 support line. Currently, the pair is trading at 128.54 with immediate support levels at 128.37 and 128.12. The intraday resistance levels are at 128.71 and 128.96.

On the intraday chart, a three-black soldiers pattern is present that indicates a further bearish trajectory during this week. The SMA-14 is indicating resistance at 129.34 and the SMA-50 is at 130.59. The pair is also keeping below the mid-Bollinger band which is at 129.53 while the upper and lower bands are at 130.55 and 128.50 respectively. The pair has gained nearly 0.19% so far in the day, however, despite the gain, the intraday price pattern remains bearish and the current uptick can be well taken for a sell entry using the following levels

Direction: Sell

Entry: 128.70

Take Profit: 128.30 -128.10

Stop-Loss: 129.05