EUR/JPY has been rising steadily in the past trading sessions, gaining 1.16% since the beginning of the semester.
During the Asian session, the pair hovered around yesterday’s high at 130.766 and then started to decline.
As it begun to get away from the previous close, as shown by the HLOC, price action converged on a bearish confluence and the market accelerated downward.
The momentum indicators supported the information relayed by the Market Pressure, with the RSI below the 50 threshold on the scalping and intraday levels.
These elements validated the sell signal provided by the Target Geometry at 130.480: the currency pair dropped 70 pips from the entry point marked by the indicator and hit target 7 at 129.778.
The market bounced on target 7 and it’s currently correcting up. We’ll see if the 130.00 round level will be able to hold as resistence and determine a bearish continuation or if price will try to climb back up toward yesterday’s close.
